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The Brink's Company's (NYSE:BCO) CEO Compensation Is Looking A Bit Stretched At The Moment

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Performance at The Brink's Company (NYSE:BCO) has been reasonably good and CEO Doug Pertz has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 07 May 2021. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Brink's

Comparing The Brink's Company's CEO Compensation With the industry

At the time of writing, our data shows that The Brink's Company has a market capitalization of US$4.0b, and reported total annual CEO compensation of US$14m for the year to December 2020. Notably, that's an increase of 65% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$922k.

On comparing similar companies from the same industry with market caps ranging from US$2.0b to US$6.4b, we found that the median CEO total compensation was US$4.5m. Accordingly, our analysis reveals that The Brink's Company pays Doug Pertz north of the industry median. What's more, Doug Pertz holds US$32m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component

2020

2019

Proportion (2020)

Salary

US$922k

US$997k

7%

Other

US$13m

US$7.4m

93%

Total Compensation

US$14m

US$8.4m

100%

On an industry level, roughly 23% of total compensation represents salary and 77% is other remuneration. Brink's sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ceo-compensation
ceo-compensation

A Look at The Brink's Company's Growth Numbers

The Brink's Company has seen its earnings per share (EPS) increase by 87% a year over the past three years. Its revenue is up 4.0% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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.

Has The Brink's Company Been A Good Investment?

The Brink's Company has generated a total shareholder return of 9.7% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 2 warning signs (and 1 which makes us a bit uncomfortable) in Brink's we think you should know about.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.