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

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R. O'Driscoll became the CEO of Corby Spirit and Wine Limited (TSE:CSW.A) in 2009. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

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$508m, and pays its CEO total annual compensation worth CA$1.5m. (This is based on the year to June 2018). While we always look at total compensation first, we note that the salary component is less, at CA$421k. When we examined a selection of companies with market caps ranging from CA$269m to CA$1.1b, we found the median CEO total compensation was CA$1.3m.

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So R. O'Driscoll is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Corby Spirit and Wine has changed over time.

TSX:CSW.A CEO Compensation, May 5th 2019
TSX:CSW.A CEO Compensation, May 5th 2019

Is Corby Spirit and Wine Limited Growing?

On average over the last three years, Corby Spirit and Wine Limited has grown earnings per share (EPS) by 3.4% each year (using a line of best fit). It achieved revenue growth of 3.4% over the last year.

I'd prefer higher revenue growth, but it is good to see modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. It could be important to check this free visual depiction of what analysts expect for the future.

Has Corby Spirit and Wine Limited Been A Good Investment?

With a total shareholder return of 6.9% over three years, Corby Spirit and Wine Limited has done okay by shareholders. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Remuneration for R. O'Driscoll is close enough to the median pay for a CEO of a similar sized company .

We see room for improved growth, as well as fairly unremarkable returns over the last three years. But we don't think the CEO compensation is a problem. Shareholders may want to check for free if Corby Spirit and Wine insiders are buying or selling shares.

If you want to buy a stock that is better than Corby Spirit and Wine, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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.