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In 2003 Clarence Smith was appointed CEO of
Haverty Furniture Companies, Inc. (NYSE:HVT). This report
will, first, examine the CEO compensation levels in comparison to
CEO compensation at companies of similar size. After that, we will
consider the growth in the business. Third, we'll reflect on the
total return to shareholders over three years, as a second measure
of business performance. The aim of all this is to consider the
appropriateness of CEO pay levels.
See our latest analysis for
Haverty Furniture Companies
At the time of writing our data says that Haverty
Furniture Companies, Inc. has a market cap of US$384m, and is
paying total annual CEO compensation of US$1.7m. (This figure is
for the year to December 2018). That's a modest increase of 2.6% on
the prior year year. While this analysis focuses on total
compensation, it's worth noting the salary is lower, valued at
US$660k. We examined companies with market caps from US$200m to
US$800m, and discovered that the median CEO total compensation of
that group was US$1.7m.
That means Clarence Smith receives fairly typical
remuneration for the CEO of a company that size. This doesn't tell
us a whole lot on its own, but looking at the performance of the
actual business will give us useful context.
You can see, below, how CEO compensation at
Haverty Furniture Companies has changed over time.
Earnings per share at Haverty Furniture
Companies, Inc. are much the same as they were three years ago,
albeit slightly lower, based on the trend. It saw its revenue drop
-1.6% over the last year.
Unfortunately there is a complete lack of
earnings per share improvement, over three years. This is
compounded by the fact revenue is actually down on last year. So
given this relatively weak performance, shareholders would probably
not want to see high compensation for the CEO. It could be
important to check this free visual depiction
of what analysts expect for the future.
With a total shareholder return of 23% over three
years, Haverty Furniture Companies, Inc. shareholders would, in
general, be reasonably content. But they probably don't want to see
the CEO paid more than is normal for companies around the same
Clarence Smith is paid around the same as most
CEOs of similar size companies.
The company isn't growing earnings per share, and
nor have the total returns inspired us. We wouldn't say the CEO pay
is too high, but one might argue that the company should improve
returns to shareholders before increasing it. If you think CEO
compensation levels are interesting you will probably really like
this free visualization of
insider trading at Haverty Furniture Companies.
If you want to buy a stock that is better than
Haverty Furniture Companies, this free list of high return, low
debt companies is a great place to look.
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
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.