Tom Salmon became the CEO of Berry Global Group, Inc. (NYSE:BERY) in 2017. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Tom Salmon’s Compensation Compare With Similar Sized Companies?
According to our data, Berry Global Group, Inc. has a market capitalization of US$5.7b, and paid its CEO total annual compensation worth US$5.6m over the year to September 2019. Notably, that’s an increase of 17% over the year before. While we always look at total compensation first, we note that the salary component is less, at US$1.0m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations from US$4.0b to US$12b, and the median CEO total compensation was US$6.4m.
So Tom Salmon is paid around the average of 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 Berry Global Group has changed over time.
Is Berry Global Group, Inc. Growing?
Over the last three years Berry Global Group, Inc. has grown its earnings per share (EPS) by an average of 4.7% per year (using a line of best fit). Its revenue is up 21% over last year.
I think the revenue growth is good. And the modest growth in earnings per share isn’t bad, either. Although we’ll stop short of calling the stock a top performer, we think the company has potential. You might want to check this free visual report on analyst forecasts for future earnings.
Has Berry Global Group, Inc. Been A Good Investment?
With a three year total loss of 12%, Berry Global Group, Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
Tom Salmon is paid around what is normal the leaders of comparable size companies.
We would like to see somewhat stronger per share growth. And it’s hard to argue that the returns over the last three years have delighted. This contrasts with the growth in CEO remuneration. So suffice it to say we don’t think the compensation is modest. Shareholders may want to check for free if Berry Global Group insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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