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NYSE:PRTY Long

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NYSE:PRTY   None
Name: Party City Holdco Inc.
Ticker: PRTY
Exchange: NYSE
Founded: 1947
Industry: Specialty Stores
Sector: Retail
Market Cap: US$178.532m
Shares outstanding: 94.46m
Website: www.partycity.com
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It is impossible for the situation to remain as it is now.
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Jim Harrison became the CEO of Party City Holdco Inc. (NYSE:PRTY) in 2014. 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 method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Party City Holdco

How Does Jim Harrison's Compensation Compare With Similar Sized Companies?
According to our data, Party City Holdco Inc. has a market capitalization of US$204m, and paid its CEO total annual compensation worth US$2.5m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.8m. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO total compensation was US$1.2m.

Thus we can conclude that Jim Harrison receives more in total compensation than the median of a group of companies in the same market, and of similar size to Party City Holdco Inc.. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see a visual representation of the CEO compensation at Party City Holdco, below.

NYSE:PRTY CEO Compensation, November 13th 2019
NYSE:PRTY CEO Compensation, November 13th 2019
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Is Party City Holdco Inc. Growing?
On average over the last three years, Party City Holdco Inc. has shrunk earnings per share by 19% each year (measured with a line of best fit). In the last year, its revenue changed by just 0.5%.

Sadly for shareholders, earnings per share are actually down, over three years. And the flat revenue is seriously uninspiring. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.

Has Party City Holdco Inc. Been A Good Investment?
Given the total loss of 87% over three years, many shareholders in Party City Holdco Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...
We compared the total CEO remuneration paid by Party City Holdco Inc., and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

Neither earnings per share nor revenue have been growing sufficiently to impress us, over the last three years. Over the same period, investors would have come away with nothing in the way of share price gains. Some might well form the view that the CEO is paid too generously! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Party City Holdco (free visualization of insider trades).

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

Source: finance.yahoo.com/ne...o-inc-172014896.html

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