Is The Buckle, Inc.'s (NYSE:BKE) CEO Paid At A Competitive Rate?

Simply Wall St

Dennis Nelson became the CEO of The Buckle, Inc. (NYSE:BKE) in 1997. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Buckle

How Does Dennis Nelson's Compensation Compare With Similar Sized Companies?

According to our data, The Buckle, Inc. has a market capitalization of US$1.0b, and pays its CEO total annual compensation worth US$3.0m. (This is based on the year to February 2019). We think total compensation is more important but we note that the CEO salary is lower, at US$1m. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO total compensation was US$2.7m.

So Dennis Nelson is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at Buckle, below.

NYSE:BKE CEO Compensation, September 11th 2019

Is The Buckle, Inc. Growing?

On average over the last three years, The Buckle, Inc. has shrunk earnings per share by 7.1% each year (measured with a line of best fit). It saw its revenue drop -2.9% over the last year.

Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.

Has The Buckle, Inc. Been A Good Investment?

The Buckle, Inc. has generated a total shareholder return of 18% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Dennis Nelson is paid around the same as most CEOs of similar size companies.

We're not seeing great strides in earnings per share, and total returns were decent but not amazing in the last three years. We wouldn't say the CEO pay is too high, but one might argue that the company should improve returns to shareholders before increasing it. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Buckle.

If you want to buy a stock that is better than Buckle, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.