Under the guidance of CEO Jack Springer, Malibu Boats, Inc. (NASDAQ:MBUU) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 03 November 2021. However, some shareholders will still be cautious of paying the CEO excessively.
Comparing Malibu Boats, Inc.'s CEO Compensation With the industry
At the time of writing, our data shows that Malibu Boats, Inc. has a market capitalization of US$1.4b, and reported total annual CEO compensation of US$4.5m for the year to June 2021. That's a notable increase of 98% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$755k.
For comparison, other companies in the same industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$3.4m. This suggests that Jack Springer is paid more than the median for the industry. What's more, Jack Springer holds US$7.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Talking in terms of the industry, salary represented approximately 18% of total compensation out of all the companies we analyzed, while other remuneration made up 82% of the pie. There isn't a significant difference between Malibu Boats and the broader market, in terms of salary allocation in the overall compensation package. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Malibu Boats, Inc.'s Growth Numbers
Malibu Boats, Inc.'s earnings per share (EPS) grew 55% per year over the last three years. In the last year, its revenue is up 42%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Malibu Boats, Inc. Been A Good Investment?
Boasting a total shareholder return of 66% over three years, Malibu Boats, Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Malibu Boats that investors should think about before committing capital to this stock.
Switching gears from Malibu Boats, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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