Michael Benstock became the CEO of Superior Group of Companies, Inc. (NASDAQ:SGC) in 2003, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Superior Group of Companies pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
How Does Total Compensation For Michael Benstock Compare With Other Companies In The Industry?
According to our data, Superior Group of Companies, Inc. has a market capitalization of US$370m, and paid its CEO total annual compensation worth US$1.9m over the year to December 2019. We note that's a decrease of 21% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$542k.
On examining similar-sized companies in the industry with market capitalizations between US$200m and US$800m, we discovered that the median CEO total compensation of that group was US$2.7m. Accordingly, Superior Group of Companies pays its CEO under the industry median. Furthermore, Michael Benstock directly owns US$16m worth of shares in the company, implying that they are deeply invested in the company's success.
On an industry level, roughly 30% of total compensation represents salary and 70% is other remuneration. Our data reveals that Superior Group of Companies allocates salary more or less in line with the wider market. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Superior Group of Companies, Inc.'s Growth
Superior Group of Companies, Inc.'s earnings per share (EPS) grew 12% per year over the last three years. In the last year, its revenue is up 22%.
Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Superior Group of Companies, Inc. Been A Good Investment?
Superior Group of Companies, Inc. has generated a total shareholder return of 12% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
As previously discussed, Michael is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. But over the last three years, EPS growth has been growing rapidly, which is a great sign for the company. Shareholder returns, in comparison, have not been as impressive. Shareholder returns could be better but we're pleased with the positive EPS growth. So it's fair to say Michael has done quite well despite modest compensation and shareholders might not be averse to a raise.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 4 warning signs for Superior Group of Companies that investors should be aware of in a dynamic business environment.
Switching gears from Superior Group of Companies, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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