Most Shareholders Will Probably Find That The CEO Compensation For Constellation Brands, Inc. (NYSE:STZ) Is Reasonable

Key Insights

• Constellation Brands will host its Annual General Meeting on 17th of July
• Salary of US$1.35m is part of CEO Bill Newlands's total remuneration
• The total compensation is similar to the average for the industry
• Constellation Brands' total shareholder return over the past three years was 17% while its EPS grew by 27% over the past three years

Under the guidance of CEO Bill Newlands, Constellation Brands, Inc. (NYSE:STZ) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 17th of July. We present our case of why we think CEO compensation looks fair.

View our latest analysis for Constellation Brands

How Does Total Compensation For Bill Newlands Compare With Other Companies In The Industry?

According to our data, Constellation Brands, Inc. has a market capitalization of US$46b, and paid its CEO total annual compensation worth US$15m over the year to February 2024. Notably, that's a decrease of 9.0% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.4m.

In comparison with other companies in the American Beverage industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$18m. This suggests that Constellation Brands remunerates its CEO largely in line with the industry average. What's more, Bill Newlands holds US$3.7m worth of shares in the company in their own name.

Component	2024	2023	Proportion (2024)
Salary	US$1.4m	US$1.3m	9%
Other	US$13m	US$15m	91%
Total Compensation	US$15m	US$16m	100%

On an industry level, roughly 12% of total compensation represents salary and 88% is other remuneration. In Constellation Brands' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Constellation Brands, Inc.'s Growth Numbers

Constellation Brands, Inc. has seen its earnings per share (EPS) increase by 27% a year over the past three years. It achieved revenue growth of 5.3% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Constellation Brands, Inc. Been A Good Investment?

Constellation Brands, Inc. has generated a total shareholder return of 17% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 3 warning signs for Constellation Brands that investors should look into moving forward.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com