Shareholders May Be A Bit More Conservative With Staffing 360 Solutions, Inc.'s (NASDAQ:STAF) CEO Compensation For Now
Key Insights
-
Staffing 360 Solutions to hold its Annual General Meeting on 27th of December
-
Salary of US$503.0k is part of CEO Brendan Flood's total remuneration
-
The total compensation is similar to the average for the industry
-
Over the past three years, Staffing 360 Solutions' EPS grew by 113% and over the past three years, the total loss to shareholders 99%
Shareholders of Staffing 360 Solutions, Inc. (NASDAQ:STAF) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 27th of December. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.
See our latest analysis for Staffing 360 Solutions
How Does Total Compensation For Brendan Flood Compare With Other Companies In The Industry?
At the time of writing, our data shows that Staffing 360 Solutions, Inc. has a market capitalization of US$3.3m, and reported total annual CEO compensation of US$1.2m for the year to December 2022. That's a notable decrease of 24% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$503k.
For comparison, other companies in the American Professional Services industry with market capitalizations below US$200m, reported a median total CEO compensation of US$1.0m. From this we gather that Brendan Flood is paid around the median for CEOs in the industry. What's more, Brendan Flood holds US$103k worth of shares in the company in their own name.
| Component | 2022 | 2022 | Proportion (2022) |
| Salary | US$503k | US$646k | 41% |
| Other | US$717k | US$961k | 59% |
| Total Compensation | US$1.2m | US$1.6m | 100% |
Speaking on an industry level, nearly 15% of total compensation represents salary, while the remainder of 85% is other remuneration. Staffing 360 Solutions is paying a higher share of its remuneration through a 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.
Staffing 360 Solutions, Inc.'s Growth
Staffing 360 Solutions, Inc. has seen its earnings per share (EPS) increase by 113% a year over the past three years. Its revenue is up 26% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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.