Yahoo Finance Is Anheuser-Busch InBev SA/NV's (EBR:ABI) CEO Pay Justified?
Carlos de Brito became the CEO of Anheuser-Busch InBev SA/NV (EBR:ABI) in 2005. This analysis aims first to contrast CEO compensation with other large companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Anheuser-Busch InBev
How Does Carlos de Brito's Compensation Compare With Similar Sized Companies?
Our data indicates that Anheuser-Busch InBev SA/NV is worth €170b, and total annual CEO compensation was reported as US$2.6m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$1.7m. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$2.5m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
So Carlos de Brito receives a similar amount to the median CEO pay, amongst the companies we looked at. 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 Anheuser-Busch InBev has changed over time.
Is Anheuser-Busch InBev SA/NV Growing?
Anheuser-Busch InBev SA/NV has increased its earnings per share (EPS) by an average of 27% a year, over the last three years (using a line of best fit). Its revenue is down 4.2% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Anheuser-Busch InBev SA/NV Been A Good Investment?
Since shareholders would have lost about 20% over three years, some Anheuser-Busch InBev SA/NV shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Carlos de Brito is paid around what is normal the leaders of larger companies.
We think that the EPS growth is very pleasing, but we find the returns over the last three years to be lacking. Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. Whatever your view on compensation, you might want to check if insiders are buying or selling Anheuser-Busch InBev shares (free trial).
If you want to buy a stock that is better than Anheuser-Busch InBev, this free list of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.
