Yahoo Finance Does Corby Spirit and Wine Limited's (TSE:CSW.A) CEO Salary Reflect Performance?
In 2009 R. O'Driscoll was appointed CEO of Corby Spirit and Wine Limited (TSE:CSW.A). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. 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?
According to our data, Corby Spirit and Wine Limited has a market capitalization of CA$446m, and paid its CEO total annual compensation worth CA$1.7m over the year to June 2019. Notably, that's an increase of 9.3% over the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$425k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from CA$266m to CA$1.1b, we found the median CEO total compensation was CA$1.4m.
So R. O'Driscoll receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Corby Spirit and Wine has changed from year to year.
Is Corby Spirit and Wine Limited Growing?
Over the last three years, Corby Spirit and Wine Limited has not seen its earnings per share change much, though there is a positive trend. It achieved revenue growth of 1.8% over the last year.
I'd prefer higher revenue growth, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Corby Spirit and Wine Limited Been A Good Investment?
Given the total loss of 20% over three years, many shareholders in Corby Spirit and Wine Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Remuneration for R. O'Driscoll is close enough to the median pay for a CEO of a similar sized company .
The per share growth could be better, in our view. And we think the shareholder returns - over three years - have been underwhelming. This doesn't look great when you consider CEO remuneration is up on last year. So suffice it to say we don't think the compensation is modest. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Corby Spirit and Wine.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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