In 2011 P. Debney was appointed CEO of American Outdoor Brands Corporation (NASDAQ:AOBC). First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for American Outdoor Brands
How Does P. Debney’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that American Outdoor Brands Corporation has a market cap of US$687m, and is paying total annual CEO compensation of US$2.2m. (This number is for the twelve months until 2018). While we always look at total compensation first, we note that the salary component is less, at US$734k. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO compensation was US$2.4m.
So P. Debney receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at American Outdoor Brands, below.
Is American Outdoor Brands Corporation Growing?
Over the last three years American Outdoor Brands Corporation has shrunk its earnings per share by an average of 31% per year. It saw its revenue drop -15% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. This is compounded by the fact revenue is actually down on last year. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
You might want to check this free visual report on analyst forecasts for future earnings.
Has American Outdoor Brands Corporation Been A Good Investment?
Since shareholders would have lost about 43% over three years, some American Outdoor Brands Corporation shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
P. Debney is paid around the same as most CEOs of similar size companies.
Returns have been disappointing and the company is not growing its earnings per share. Few would argue that it’s wise for the company to pay any more, before returns improve. Shareholders may want to check for free if American Outdoor Brands insiders are buying or selling shares.