Yahoo Finance Resources Connection, Inc.'s (NASDAQ:RGP) CEO Compensation Is Looking A Bit Stretched At The Moment
Under the guidance of CEO Kate Duchene, Resources Connection, Inc. (NASDAQ:RGP) has performed reasonably well recently. As shareholders go into the upcoming AGM on 21 October 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
See our latest analysis for Resources Connection
How Does Total Compensation For Kate Duchene Compare With Other Companies In The Industry?
According to our data, Resources Connection, Inc. has a market capitalization of US$590m, and paid its CEO total annual compensation worth US$2.9m over the year to May 2021. We note that's an increase of 54% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$700k.
On comparing similar companies from the same industry with market caps ranging from US$200m to US$800m, we found that the median CEO total compensation was US$1.6m. Accordingly, our analysis reveals that Resources Connection, Inc. pays Kate Duchene north of the industry median. Furthermore, Kate Duchene directly owns US$1.7m worth of shares in the company.
Component | 2021 | 2020 | Proportion (2021) |
Salary | US$700k | US$694k | 24% |
Other | US$2.2m | US$1.2m | 76% |
Total Compensation | US$2.9m | US$1.9m | 100% |
On an industry level, around 23% of total compensation represents salary and 77% is other remuneration. Although there is a difference in how total compensation is set, Resources Connection more or less reflects the market in terms of setting the salary. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Resources Connection, Inc.'s Growth
Resources Connection, Inc.'s earnings per share (EPS) grew 15% per year over the last three years. In the last year, its revenue is down 2.0%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Resources Connection, Inc. Been A Good Investment?
Resources Connection, Inc. has generated a total shareholder return of 18% 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.
To Conclude...
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Resources Connection that you should be aware of before investing.
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.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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