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Signet Jewelers Limited's (NYSE:SIG) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

  • Signet Jewelers will host its Annual General Meeting on 28th of June

  • Total pay for CEO Gina Drosos includes US$1.50m salary

  • The total compensation is similar to the average for the industry

  • Signet Jewelers' total shareholder return over the past three years was 20% while its EPS grew by 38% over the past three years

Performance at Signet Jewelers Limited (NYSE:SIG) has been reasonably good and CEO Gina Drosos has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 28th of June. Here is our take on why we think the CEO compensation looks appropriate.

View our latest analysis for Signet Jewelers

Comparing Signet Jewelers Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Signet Jewelers Limited has a market capitalization of US$4.1b, and reported total annual CEO compensation of US$9.0m for the year to February 2024. Notably, that's a decrease of 18% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.5m.

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For comparison, other companies in the American Specialty Retail industry with market capitalizations ranging between US$2.0b and US$6.4b had a median total CEO compensation of US$9.0m. So it looks like Signet Jewelers compensates Gina Drosos in line with the median for the industry. Furthermore, Gina Drosos directly owns US$60m worth of shares in the company, implying that they are deeply invested in the company's success.

Component

2024

2023

Proportion (2024)

Salary

US$1.5m

US$1.5m

17%

Other

US$7.5m

US$9.5m

83%

Total Compensation

US$9.0m

US$11m

100%

Talking in terms of the industry, salary represented approximately 16% of total compensation out of all the companies we analyzed, while other remuneration made up 84% of the pie. Our data reveals that Signet Jewelers allocates salary more or less in line with the wider market. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ceo-compensation
ceo-compensation

A Look at Signet Jewelers Limited's Growth Numbers

Signet Jewelers Limited's earnings per share (EPS) grew 38% per year over the last three years. In the last year, its revenue is down 8.5%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Signet Jewelers Limited Been A Good Investment?

Signet Jewelers Limited has served shareholders reasonably well, with a total return of 20% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 2 warning signs for Signet Jewelers you should be aware of, and 1 of them can't be ignored.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com