Have you ever wondered what it's like to be at the helm of a major retail giant, especially one focused on the active lifestyle like Academy Sports + Outdoors? The compensation of a CEO isn't just a simple salary figure; it's a complex package designed to incentivize leadership, drive performance, and align their interests with those of the shareholders. Let's delve into the fascinating world of executive compensation and uncover how much the CEO of Academy Sports + Outdoors makes.
Step 1: Who is the Current CEO of Academy Sports + Outdoors?
First things first, to understand the compensation, we need to know who we're talking about! The current Chief Executive Officer (CEO) of Academy Sports + Outdoors is Steve Lawrence. He was appointed to this role in June 2023. Prior to becoming CEO, Mr. Lawrence served as the Executive Vice President and Chief Merchandising Officer, demonstrating a strong internal progression within the company.
Step 2: Unveiling the Total Compensation Package
When discussing CEO pay, it's crucial to look beyond just the base salary. The "total compensation" is a much more comprehensive figure, encompassing various components. For the fiscal year ending January 31, 2025, Steve Lawrence's total yearly compensation as CEO of Academy Sports + Outdoors was reported to be approximately $8.66 million.
Breaking Down the Components of CEO Pay
This significant sum isn't a single paycheck; it's a carefully structured package designed to motivate and reward performance. Here's a typical breakdown of how a CEO's total compensation is structured:
Base Salary: This is the fixed annual cash payment. For Steve Lawrence, his salary comprised about 12% of his total compensation. For instance, in the 2023 fiscal year, his base salary was around $949,100. This portion provides a stable income regardless of company performance, though it's often a relatively small percentage of the overall package for CEOs of large companies.
Bonuses and Non-Equity Incentive Compensation: These are cash payments tied to the achievement of specific performance targets, such as revenue growth, profitability, or strategic milestones. These are designed to directly reward short-term performance. For Mr. Lawrence, these bonuses formed a part of the substantial "non-salary" portion of his compensation.
Stock Awards: This is a major component for most public company CEOs. It involves grants of company stock, which often vest over several years. This aligns the CEO's financial interests directly with the long-term success and stock price performance of the company. The more the company's stock value increases, the more valuable these awards become for the CEO. This made up a significant portion of his compensation, around $5.62 million in stock awards for the 2023 fiscal year.
Stock Options: These give the CEO the right to buy company stock at a pre-determined price in the future. If the stock price rises above that price, the options become valuable, providing another incentive for increasing shareholder value. For Mr. Lawrence, approximately $1.87 million in stock options were part of his 2023 compensation.
Other Compensation: This category includes a variety of benefits, such as perquisites (like personal use of company aircraft, car allowances), contributions to retirement plans, and other miscellaneous benefits. While usually a smaller percentage, these can still add up. For Mr. Lawrence, this was around $29,513 in the 2023 fiscal year.
Step 3: Understanding the "Why" Behind the Pay
Why do CEOs earn so much? It's a question often debated, but there are several key factors that influence executive compensation:
Market Comparison and Industry Standards
Companies benchmark CEO salaries against those of similar-sized companies in their industry. This ensures they can attract and retain top talent. For example, Steve Lawrence's total compensation of $8.66 million is considered about average for companies of similar size in the US retail market.
Company Performance
A significant portion of a CEO's compensation is tied to company performance. If the company performs well, achieves its financial goals, and increases shareholder value, the CEO's bonuses and equity awards will likely be higher. Conversely, underperformance can lead to a decrease in variable compensation.
Company Size and Complexity
Leading a large, publicly traded company like Academy Sports + Outdoors, with hundreds of stores, thousands of employees, and complex supply chains, is an immense responsibility. The scale and complexity of operations warrant higher compensation.
Experience and Track Record
A CEO's past successes and experience in the industry play a crucial role. Steve Lawrence's extensive background in merchandising and retail certainly contributed to his compensation package.
Shareholder Alignment
The emphasis on stock awards and options is primarily to align the CEO's financial interests with those of the shareholders. When the CEO's wealth is directly tied to the company's stock performance, they are highly incentivized to make decisions that boost shareholder value. This is why a large percentage of his compensation is in the form of equity.
Step 4: The CEO Pay Ratio
Another interesting metric often reported by publicly traded companies is the CEO Pay Ratio. This ratio compares the CEO's total compensation to the median employee's annual total compensation at the same company. For Academy Sports + Outdoors, the CEO pay ratio for Steve Lawrence has been reported to be approximately 406:1 for the 2024 fiscal year. This means the CEO earns 406 times more than the median employee at the company. This figure is often used in discussions about income inequality and corporate responsibility.
Step 5: Where to Find This Information
For those who want to dig deeper, executive compensation data for public companies is readily available.
Public Filings with the SEC
Publicly traded companies in the United States are required to file detailed compensation reports with the Securities and Exchange Commission (SEC). These are often found in proxy statements (DEF 14A filings) which are released before annual shareholder meetings. These documents provide a comprehensive breakdown of all executive compensation.
Investor Relations Websites
Most companies have an "Investor Relations" section on their website, which includes annual reports, proxy statements, and other financial filings. This is often the easiest place to find official information.
Financial Data Platforms
Several financial websites and data platforms (like Simply Wall St, Salary.com, Comparably, etc.) aggregate and analyze executive compensation data, making it easier for the public to access and understand.
Frequently Asked Questions (FAQs)
How to calculate total CEO compensation?
Total CEO compensation is calculated by summing up all components: base salary, cash bonuses, stock awards, stock options, and other benefits and perquisites.
How to compare CEO salaries across different companies?
To compare CEO salaries, look for companies of similar size (by revenue or market capitalization) and within the same industry. Consider their performance metrics alongside compensation.
How to understand the role of stock options in CEO pay?
Stock options give the CEO the right to buy company shares at a set price. They become valuable if the company's stock price increases, incentivizing the CEO to boost share value for shareholders.
How to interpret the CEO pay ratio?
The CEO pay ratio indicates how many times more the CEO earns compared to the company's median employee. A higher ratio often sparks debate about income disparity.
How to find historical CEO compensation data for a company?
Historical data can be found in a company's past proxy statements filed with the SEC, usually available on their investor relations website or through financial databases.
How to assess if a CEO's pay is "fair"?
Assessing fairness is subjective. It often involves considering company performance, industry benchmarks, the CEO's responsibilities, and the company's overall compensation philosophy.
How to understand the impact of performance metrics on CEO bonuses?
CEO bonuses are directly tied to specific, pre-defined performance metrics, such as net income, revenue growth, or return on equity. Meeting or exceeding these targets leads to higher bonuses.
How to differentiate between salary and total compensation for a CEO?
Salary is the fixed cash payment. Total compensation is a much broader term, including salary, all types of bonuses, and the value of equity awards (stock and options).
How to find out about other executive salaries at Academy Sports + Outdoors?
Similar to the CEO, the compensation of other named executive officers (like the President, CFO, etc.) is also disclosed in the company's annual proxy statements.
How to understand the vesting schedule of stock awards?
Vesting schedules dictate when a CEO can fully claim their stock awards. They often vest over several years, encouraging long-term commitment and performance. For example, an award might vest 25% each year for four years.
