Stock Analysis

Does CCL Industries Inc's (TSE:CCL.B) CEO Pay Compare Well With Peers?

TSX:CCL.B
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Geoffrey Martin became the CEO of CCL Industries Inc (TSE:CCL.B) in 2008. 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 process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for CCL Industries

How Does Geoffrey Martin's Compensation Compare With Similar Sized Companies?

According to our data, CCL Industries Inc has a market capitalization of CA$9.7b, and pays its CEO total annual compensation worth CA$7m. That's less than last year. We looked at a group of companies with market capitalizations from CA$5.2b to CA$15.6b, and the median CEO compensation was CA$4m.

It would therefore appear that CCL Industries Inc pays Geoffrey Martin more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see a visual representation of the CEO compensation at CCL Industries, below.

TSX:CCL.B CEO Compensation October 15th 18
TSX:CCL.B CEO Compensation October 15th 18

Is CCL Industries Inc Growing?

CCL Industries Inc has increased its earnings per share (EPS) by an average of 23% a year, over the last three years In the last year, its revenue is up 11%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.

You might want to check this free visual report on analyst forecasts for future earnings.

Has CCL Industries Inc Been A Good Investment?

I think that the total shareholder return of 56%, over three years, would leave most CCL Industries Inc shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

We compared total CEO remuneration at CCL Industries Inc with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.

However we must not forget that the EPS growth has been very strong over three years. Even better, returns to shareholders have been plentiful, over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. Whatever your view on compensation, you might want to check if insiders are buying or selling CCL Industries Inc shares (free trial).

Or you might prefer gaze uponthis detailed graph of past earnings, revenue and cash flow .

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.