Bryan Shinn has been the CEO of U.S. Silica Holdings, Inc. (NYSE:SLCA) since 2012. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Bryan Shinn’s Compensation Compare With Similar Sized Companies?
According to our data, U.S. Silica Holdings, Inc. has a market capitalization of US$695m, and paid its CEO total annual compensation worth US$4.2m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$731k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO total compensation of that group was US$2.7m.
As you can see, Bryan Shinn is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean U.S. Silica Holdings, Inc. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at U.S. Silica Holdings has changed over time.
Is U.S. Silica Holdings, Inc. Growing?
U.S. Silica Holdings, Inc. has reduced its earnings per share by an average of 38% a year, over the last three years (measured with a line of best fit). Its revenue is up 3.4% over last year.
Unfortunately, earnings per share have trended lower over the last three years. And the modest revenue growth over 12 months isn’t much comfort against the reduced earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
Has U.S. Silica Holdings, Inc. Been A Good Investment?
With a three year total loss of 77%, U.S. Silica Holdings, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
We compared the total CEO remuneration paid by U.S. Silica Holdings, Inc., and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years. Over the same period, investors would have come away with nothing in the way of share price gains. In our opinion the CEO might be paid too generously! Shareholders may want to check for free if U.S. Silica Holdings 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.
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If you spot an error that warrants correction, please contact the editor at email@example.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.