Yahoo Finance Why We Think PVH Corp.'s (NYSE:PVH) CEO Compensation Is Not Excessive At All
Key Insights
PVH's Annual General Meeting to take place on 20th of June
Salary of US$1.29m is part of CEO Stefan Larsson's total remuneration
The overall pay is comparable to the industry average
PVH's EPS grew by 141% over the past three years while total shareholder return over the past three years was 7.2%
CEO Stefan Larsson has done a decent job of delivering relatively good performance at PVH Corp. (NYSE:PVH) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 20th of June. We present our case of why we think CEO compensation looks fair.
Check out our latest analysis for PVH
Comparing PVH Corp.'s CEO Compensation With The Industry
According to our data, PVH Corp. has a market capitalization of US$6.7b, and paid its CEO total annual compensation worth US$16m over the year to February 2024. We note that's an increase of 29% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.3m.
On comparing similar companies from the American Luxury industry with market caps ranging from US$4.0b to US$12b, we found that the median CEO total compensation was US$14m. From this we gather that Stefan Larsson is paid around the median for CEOs in the industry. What's more, Stefan Larsson holds US$7.3m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2024 | 2023 | Proportion (2024) |
Salary | US$1.3m | US$1.3m | 8% |
Other | US$14m | US$11m | 92% |
Total Compensation | US$16m | US$12m | 100% |
Speaking on an industry level, nearly 25% of total compensation represents salary, while the remainder of 75% is other remuneration. PVH sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
PVH Corp.'s Growth
Over the past three years, PVH Corp. has seen its earnings per share (EPS) grow by 141% per year. The trailing twelve months of revenue was pretty much the same as the prior period.
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. 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 PVH Corp. Been A Good Investment?
PVH Corp. has not done too badly by shareholders, with a total return of 7.2%, over three years. It would be nice to see that metric improve in the future. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.
To Conclude...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus 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 one thing, but it is also interesting to check if the CEO is buying or selling PVH (free visualization of insider trades).
Switching gears from PVH, 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.
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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.
