Yahoo Finance Is CSL Limited’s (ASX:CSL) CEO Paid Enough To Stay Motivated?
Paul Perreault became the CEO of CSL Limited (ASX:CSL) in 2013. First, this article will compare CEO compensation with compensation at other large companies. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for CSL
How Does Paul Perreault’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that CSL Limited has a market cap of AU$82.5b, and is paying total annual CEO compensation of US$11m. Notably, that’s an increase of 38% over the year before. We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO compensation to be US$4m.
As you can see, Paul Perreault is paid more than the median CEO pay at large companies, in the same market. However, this does not necessarily mean CSL Limited is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at CSL has changed from year to year.
Is CSL Limited Growing?
Over the last three years CSL Limited has grown its earnings per share (EPS) by an average of 9.3% per year. Its revenue is up 14% over last year.
This revenue growth could really point to a brighter future. And, while modest, the earnings per share growth is noticeable. So while performance isn’t amazing, we think it really does seem quite respectable.
It could be important to check this free visual depiction of what analysts expect for the future.
Has CSL Limited Been A Good Investment?
Boasting a total shareholder return of 102% over three years, CSL Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
We compared total CEO remuneration at CSL Limited with the amount paid at other large companies. Our data suggests that it pays above the median CEO pay within that group.
While we generally prefer to see stronger EPS growth, there’s no arguing with the strong returns to shareholders, over the last three years. As a result of the juicy return to investors, the CEO remuneration may well be quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at CSL Limited.
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
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.
