Anthony Allott became the CEO of Silgan Holdings Inc. (NASDAQ:SLGN) in 2006. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Anthony Allott’s Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Silgan Holdings Inc. has a market cap of US$3.4b, and reported total annual CEO compensation of US$3.4m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$1.0m. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$4.9m.
Most shareholders would consider it a positive that Anthony Allott takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it’s important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Silgan Holdings, below.
Is Silgan Holdings Inc. Growing?
On average over the last three years, Silgan Holdings Inc. has grown earnings per share (EPS) by 10% each year (using a line of best fit). Revenue was pretty flat on last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. 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 Silgan Holdings Inc. Been A Good Investment?
Silgan Holdings Inc. has not done too badly by shareholders, with a total return of 6.4%, over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
It appears that Silgan Holdings Inc. remunerates its CEO below most similar sized companies.
Since the business is growing, many would argue this suggests the pay is modest. While some might be keen on seeing higher returns, our short analysis has not produced any evidence to suggest Anthony Allott is overcompensated. It’s great to see a company that pays its CEO reasonably, even while growing. It would be an additional positive if insiders are buying shares. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Silgan Holdings (free visualization of insider trades).
Important note: Silgan Holdings 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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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. Thank you for reading.