Is Constellation Brands Inc’s (NYSE:STZ) CEO Salary Justified?

In 2007 Rob Sands was appointed CEO of Constellation Brands Inc (NYSE:STZ). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Next, we’ll consider growth that the business demonstrates. 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.

Check out our latest analysis for Constellation Brands

How Does Rob Sands’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Constellation Brands Inc has a market cap of US$37b, and is paying total annual CEO compensation of US$11m. Notably, that’s an increase of 13% over the year before. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO compensation was US$11m.

So Rob Sands is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at Constellation Brands, below.

NYSE:STZ CEO Compensation November 21st 18
NYSE:STZ CEO Compensation November 21st 18

Is Constellation Brands Inc Growing?

Over the last three years Constellation Brands Inc has grown its earnings per share (EPS) by an average of 41% per year. It achieved revenue growth of 6.2% over the 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.

It could be important to check this free visual depiction of what analysts expect for the future.

Has Constellation Brands Inc Been A Good Investment?

Most shareholders would probably be pleased with Constellation Brands Inc for providing a total return of 43% over three years. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.

In Summary…

Rob Sands is paid around the same as most CEOs of large companies.

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock.

Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.

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.