Don Slager became the CEO of Republic Services, Inc. (NYSE:RSG) in 2011. First, this article will compare CEO compensation with compensation at other large companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Don Slager’s Compensation Compare With Similar Sized Companies?
According to our data, Republic Services, Inc. has a market capitalization of US$29b, and pays its CEO total annual compensation worth US$12m. (This number is for the twelve months until December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$1.1m. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$11m. There aren’t very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
So Don Slager 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 Republic Services has changed over time.
Is Republic Services, Inc. Growing?
On average over the last three years, Republic Services, Inc. has grown earnings per share (EPS) by 25% each year (using a line of best fit). In the last year, its revenue is up 1.0%.
This demonstrates that the company has been improving recently. A good result. It’s also good to see modest revenue growth, suggesting the underlying business is healthy.
Has Republic Services, Inc. Been A Good Investment?
Boasting a total shareholder return of 87% over three years, Republic Services, Inc. has done well by shareholders. 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.
Don Slager is paid around the same as most CEOs of large companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling Republic Services shares (free trial).
Important note: Republic Services may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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