Blake Krueger has been the CEO of Wolverine World Wide Inc (NYSE:WWW) since 2007. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Wolverine World Wide
How Does Blake Krueger’s Compensation Compare With Similar Sized Companies?
According to our data, Wolverine World Wide Inc has a market capitalization of US$3.4b, and pays its CEO total annual compensation worth US$12m. Notably, that’s an increase of 18% over the year before. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO compensation was US$5m.
As you can see, Blake Krueger is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Wolverine World Wide Inc is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Wolverine World Wide, below.
Is Wolverine World Wide Inc Growing?
Wolverine World Wide Inc has reduced its earnings per share by an average of 38% a year, over the last three years. In the last year, its revenue is down -10%.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Wolverine World Wide Inc Been A Good Investment?
Most shareholders would probably be pleased with Wolverine World Wide Inc for providing a total return of 94% over three years. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
We compared total CEO remuneration at Wolverine World Wide Inc with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
On the other hand, returns have been good, so the company is doing something right. So on this analysis we’d stop short of criticizing the level of CEO compensation. Shareholders may want to check for free if Wolverine World Wide Inc insiders are buying or selling shares.
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.