Yahoo Finance Does National Beverage Corp.'s (NASDAQ:FIZZ) CEO Pay Reflect Performance?
In 1985 Nick Caporella was appointed CEO of National Beverage Corp. (NASDAQ:FIZZ). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for National Beverage
How Does Nick Caporella's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that National Beverage Corp. has a market cap of US$2.0b. The Company is party to a management agreement with CMA, a management company owned by Mr. Nick Caporella, in which Mr Caporella receives his compensation through the management company and isn't compensated directly by the company (National Beverage Corp). The management fee paid to CMA for the year to April 2019 was US$10m and Mr Caporella's compensation was included within this management fee.
We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how the management fees paid to the CEO-owned company has changed from year to year.
Is National Beverage Corp. Growing?
Over the last three years National Beverage Corp. has grown its earnings per share (EPS) by an average of 12% per year (using a line of best fit). It saw its revenue drop 4.8% over the last year.
This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. It could be important to check this free visual depiction of what analysts expect for the future.
Has National Beverage Corp. Been A Good Investment?
Since shareholders would have lost about 19% over three years, some National Beverage Corp. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Given that the company doesn't report total annual CEO compensation separately, we used the management fees paid to CMA as a proxy.
Importantly, though, the company has impressed with its earnings per share growth, over three years, the returns to investors are far less impressive, over the same period. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. So you may want to check if insiders are buying National Beverage shares with their own money (free access).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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