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Does Corby Spirit and Wine Limited’s (TSE:CSW.A) CEO Pay Reflect Performance?

In 2009 R. O’Driscoll was appointed CEO of Corby Spirit and Wine Limited (TSE:CSW.A). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Corby Spirit and Wine

How Does R. O’Driscoll’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Corby Spirit and Wine Limited has a market cap of CA$543m, and is paying total annual CEO compensation of CA$2m. We note that’s an increase of 12% above last year. When we examined a selection of companies with market caps ranging from CA$262m to CA$1.0b, we found the median CEO compensation was CA$1m.

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So R. O’Driscoll 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 Corby Spirit and Wine has changed over time.

TSX:CSW.A CEO Compensation November 5th 18
TSX:CSW.A CEO Compensation November 5th 18

Is Corby Spirit and Wine Limited Growing?

Corby Spirit and Wine Limited has increased its earnings per share (EPS) by an average of 5.4% a year, over the last three years It achieved revenue growth of 1.9% over the last year.

I’m not particularly impressed by the revenue growth, but I’m happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise.

You might want to check this free visual report on analyst forecasts for future earnings.

Has Corby Spirit and Wine Limited Been A Good Investment?

With a total shareholder return of 14% over three years, Corby Spirit and Wine Limited shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary…

R. O’Driscoll is paid around what is normal the leaders of comparable size companies.

We think many would like to see better growth. But we don’t think the CEO compensation is a problem. Shareholders may want to check for free if Corby Spirit and Wine Limited insiders are buying or selling shares.

Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .

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.