Michele Buck has been the CEO of The Hershey Company (NYSE:HSY) since 2017. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big 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. This method should give us information to assess how appropriately the company pays the CEO.
How Does Michele Buck’s Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that The Hershey Company has a market cap of US$32b, and reported total annual CEO compensation of US$12m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$1.1m. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$11m. Once you start looking at very large companies, you need to take a broader range, because there simply aren’t that many of them.
So Michele Buck receives a similar amount to the median CEO pay, amongst 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 Hershey has changed over time.
Is The Hershey Company Growing?
On average over the last three years, The Hershey Company has grown earnings per share (EPS) by 22% each year (using a line of best fit). Its revenue is up 2.0% over last year.
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 The Hershey Company Been A Good Investment?
Boasting a total shareholder return of 71% over three years, The Hershey Company has done well by shareholders. 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.
Remuneration for Michele Buck is close enough to the median pay for a CEO of a large company .
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Shareholders may want to check for free if Hershey insiders are buying or selling shares.
If you want to buy a stock that is better than Hershey, this free list of high return, low debt companies is a great place to look.
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