We Think Carlisle Companies Incorporated's (NYSE:CSL) CEO Compensation Looks Fair

Key Insights

• Carlisle Companies will host its Annual General Meeting on 1st of May
• CEO Chris Koch's total compensation includes salary of US$1.40m
• The overall pay is comparable to the industry average
• Over the past three years, Carlisle Companies' EPS grew by 36% and over the past three years, the total shareholder return was 103%

It would be hard to discount the role that CEO Chris Koch has played in delivering the impressive results at Carlisle Companies Incorporated (NYSE:CSL) recently. Coming up to the next AGM on 1st of May, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is not extravagant.

See our latest analysis for Carlisle Companies

How Does Total Compensation For Chris Koch Compare With Other Companies In The Industry?

According to our data, Carlisle Companies Incorporated has a market capitalization of US$18b, and paid its CEO total annual compensation worth US$11m over the year to December 2023. That's slightly lower by 4.2% over the previous year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.4m.

For comparison, other companies in the American Building industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$10m. So it looks like Carlisle Companies compensates Chris Koch in line with the median for the industry. Furthermore, Chris Koch directly owns US$85m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	US$1.4m	US$1.3m	13%
Other	US$9.6m	US$10m	87%
Total Compensation	US$11m	US$12m	100%

On an industry level, roughly 16% of total compensation represents salary and 84% is other remuneration. It's interesting to note that Carlisle Companies allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Carlisle Companies Incorporated's Growth

Carlisle Companies Incorporated has seen its earnings per share (EPS) increase by 36% a year over the past three years. In the last year, its revenue is down 16%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Carlisle Companies Incorporated Been A Good Investment?

We think that the total shareholder return of 103%, over three years, would leave most Carlisle Companies Incorporated shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 2 warning signs for Carlisle Companies that investors should look into moving forward.

Switching gears from Carlisle Companies, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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This article by Simply Wall St 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. Simply Wall St has no position in any stocks mentioned.