Alison Watkins became the CEO of Coca-Cola Amatil Limited (ASX:CCL) in 2014. 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 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.
View our latest analysis for Coca-Cola Amatil
How Does Alison Watkins's Compensation Compare With Similar Sized Companies?
Our data indicates that Coca-Cola Amatil Limited is worth AU$8.7b, and total annual CEO compensation was reported as AU$4.1m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at AU$2.2m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of AU$5.8b to AU$18b. The median total CEO compensation was AU$4.1m.
So Alison Watkins is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Coca-Cola Amatil has changed over time.
Is Coca-Cola Amatil Limited Growing?
Over the last three years Coca-Cola Amatil Limited has grown its earnings per share (EPS) by an average of 16% per year (using a line of best fit). Its revenue is up 5.9% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. It could be important to check this free visual depiction of what analysts expect for the future.
Has Coca-Cola Amatil Limited Been A Good Investment?
Most shareholders would probably be pleased with Coca-Cola Amatil Limited for providing a total return of 40% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Remuneration for Alison Watkins is close enough to the median pay for a CEO of a similar sized company .
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! Shareholders may want to check for free if Coca-Cola Amatil 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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