Does New Age Beverages Corporation’s (NASDAQ:NBEV) CEO Salary Reflect Performance?

Brent Willis has been the CEO of New Age Beverages Corporation (NASDAQ:NBEV) since 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for New Age Beverages

How Does Brent Willis’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that New Age Beverages Corporation has a market cap of US$424m, and is paying total annual CEO compensation of US$200k. (This is based on the year to December 2017). Notably, the salary of US$200k is the vast majority of the CEO compensation. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO compensation of that group was US$1.5m.

A first glance this seems like a real positive for shareholders, since Brent Willis is paid less than the average compensation paid by similar sized companies. Though positive, it’s important we delve into the performance of the actual business.

You can see, below, how CEO compensation at New Age Beverages has changed over time.

Is New Age Beverages Corporation Growing?

New Age Beverages Corporation has reduced its earnings per share by an average of 45% a year, over the last three years (measured with a line of best fit). It saw its revenue drop -4.0% over the last year.

Sadly for shareholders, earnings per share are actually down, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.

Has New Age Beverages Corporation Been A Good Investment?

Most shareholders would probably be pleased with New Age Beverages Corporation for providing a total return of 2768% over three years. 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.

In Summary…

New Age Beverages Corporation is currently paying its CEO below what is normal for companies of its size.

It’s well worth noting that while Brent Willis is paid less than most company leaders (at similar sized companies), there isn’t much EPS growth. Having said that, returns to shareholders have been great. We would like to see EPS growth, but in our view it seems the CEO is remunerated reasonably. So you may want to check if insiders are buying New Age Beverages shares with their own money (free access).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.