Yahoo Finance Does Empire Company Limited's (TSE:EMP.A) CEO Salary Reflect Performance?
Mike Medline has been the CEO of Empire Company Limited (TSE:EMP.A) since 2017. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Empire
How Does Mike Medline's Compensation Compare With Similar Sized Companies?
According to our data, Empire Company Limited has a market capitalization of CA$8.6b, and paid its CEO total annual compensation worth CA$5.4m over the year to May 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$1.0m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations from CA$5.3b to CA$16b, and the median CEO total compensation was CA$4.9m.
So Mike Medline is paid around the average of 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 Empire has changed over time.
Is Empire Company Limited Growing?
Over the last three years Empire Company Limited has grown its earnings per share (EPS) by an average of 119% per year (using a line of best fit). It achieved revenue growth of 4.4% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. It could be important to check this free visual depiction of what analysts expect for the future.
Has Empire Company Limited Been A Good Investment?
Most shareholders would probably be pleased with Empire Company Limited for providing a total return of 100% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
Mike Medline is paid around the same as most CEOs of similar size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Shareholders may want to check for free if Empire insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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