Should You Be Pleased About The CEO Pay At Ross Stores Inc’s (NASDAQ:ROST)

In 2014 Barbara Rentler was appointed CEO of Ross Stores Inc (NASDAQ:ROST). First, this article will compare CEO compensation with compensation at other large companies. 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.

View our latest analysis for Ross Stores

How Does Barbara Rentler’s Compensation Compare With Similar Sized Companies?

Our data indicates that Ross Stores Inc is worth US$33b, and total annual CEO compensation is US$12m. (This is based on the year to 2018). While we always look at total compensation first, we note that the salary component is less, at US$1.3m. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO compensation was US$11m. There aren’t very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.

That means Barbara Rentler receives fairly typical remuneration for the CEO of a large company. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.

The graphic below shows how CEO compensation at Ross Stores has changed from year to year.

Is Ross Stores Inc Growing?

Over the last three years Ross Stores Inc has grown its earnings per share (EPS) by an average of 19% per year. It achieved revenue growth of 9.8% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s also good to see modest revenue growth, suggesting the underlying business is healthy.

It could be important to check this free visual depiction of what analysts expect for the future.

Has Ross Stores Inc Been A Good Investment?

I think that the total shareholder return of 67%, over three years, would leave most Ross Stores Inc shareholders smiling. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.

In Summary…

Barbara Rentler is paid around what is normal the leaders of larger companies.

The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling Ross Stores shares (free trial).

Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.