What Can We Conclude About Hamilton Beach Brands Holding's (NYSE:HBB) CEO Pay?

Greg Trepp has been CEO of Hamilton Beach Brands Holding Company (NYSE: HBB) since 2017. This article examines executive compensation in terms of overall company performance. This analysis will also assess the appropriateness of the CEO's compensation, taking into account the company's profits and shareholder returns.
Check out our latest analysis for Hamilton Beach Brands Holding
Compare the compensation of the CEO of Hamilton Beach Brands Holding Company with the industry
At the time of writing, our data shows that Hamilton Beach Brands Holding Company has a market capitalization of $ 288 million and reported total annual CEO compensation of $ 2.4 million for the year ended December 2019. In particular, this corresponds to a decrease of 13% compared to the previous year. While this analysis focuses on total compensation, it should be recognized that the salary component is lower at $ 742,000.
When we researched similarly sized companies in the industry with a market capitalization between $ 100 million and $ 400 million, we found that the average total compensation for this group's CEO was $ 1.7 million. This suggests Greg Trepp is being paid more than the median for the industry. In addition, Greg Trepp directly owns shares in the company valued at $ 1.7 million.
component
2019
2018
Share (2019)
salary
$ 742,000
$ 735,000
31%
Other
$ 1.7 million
$ 2.0 million
69%
Total compensation
$ 2.4 million
$ 2.8 million
100%
In terms of the industry, salary made up roughly 25% of total compensation for all of the companies we analyzed, while other compensation made up 75% of the pie. It is interesting to note that Hamilton Beach Brands Holding pays a larger proportion of the compensation through salaries compared to the industry. When total compensation is geared towards non-salary performance, it means that CEO compensation is tied to company performance.
CEO compensation
Hamilton Beach Brands Holding grows
Hamilton Beach Brands Holding Company posted annual earnings per share (EPS) of 13% for the past three years. It achieved a sales growth of 5.4% last year.
Overall, this is a positive result for shareholders, which shows that the company has improved over the past few years. It's nice to see revenue going north as it is compatible with healthy business conditions. While we don't have analyst predictions, it's worth evaluating this data-rich visualization of earnings, revenue, and cash flow.
Was Hamilton Beach Brands Holding a good investment?
Since shareholders would have lost around 42% in three years, some Hamilton Beach Brands Holding Company investors would certainly experience negative emotions. As such, shareholders likely want the company to be as generous as possible with CEO compensation.
In total...
As previously mentioned, Greg is paid more than what is normal for CEOs of similar size companies in the same industry. However, we must remember that EPS growth has been very strong, but we cannot say the same about uninspiring shareholder returns (over the past three years). While we think the CEO's compensation isn't too high given the negative investor returns, it's more generous than modest.
While it's important to look out for CEO compensation, investors should also consider other elements of the business. We conducted our research and discovered three warning signs for Hamilton Beach Brands Holding that investors should look to the future.
The quality of the business arguably is far more important than the CEO's compensation. So check out this free list of interesting companies that have high return on equity and low debt.
This article from Simply Wall St is of a general nature. It is not a recommendation to buy or sell stocks and does not take into account your goals or your financial situation. We want to provide you with a long-term, focused analysis based on fundamental data. Note that our analysis may not take into account the latest price sensitive company announcements or quality materials. Simply Wall St has no position in the stocks mentioned.

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