In This Article:
Mike Casey became the CEO of Carter's, Inc. (NYSE:CRI) in 2008, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Carter's.
Check out our latest analysis for Carter's
How Does Total Compensation For Mike Casey Compare With Other Companies In The Industry?
Our data indicates that Carter's, Inc. has a market capitalization of US$4.0b, and total annual CEO compensation was reported as US$7.6m for the year to December 2019. That's a fairly small increase of 5.1% over the previous year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.1m.
On comparing similar companies from the same industry with market caps ranging from US$2.0b to US$6.4b, we found that the median CEO total compensation was US$7.5m. From this we gather that Mike Casey is paid around the median for CEOs in the industry. What's more, Mike Casey holds US$41m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | US$1.1m | US$1.0m | 14% |
| Other | US$6.6m | US$6.2m | 86% |
| Total Compensation | US$7.6m | US$7.3m | 100% |
On an industry level, around 30% of total compensation represents salary and 70% is other remuneration. Carter's sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Carter's, Inc.'s Growth Numbers
Carter's, Inc. has reduced its earnings per share by 16% a year over the last three years. Its revenue is down 11% over the previous year.
Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Carter's, Inc. Been A Good Investment?
Given the total shareholder loss of 17% over three years, many shareholders in Carter's, Inc. are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.