In 2012 Gary Wojtaszek was appointed CEO of CyrusOne Inc. (NASDAQ:CONE). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Gary Wojtaszek’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that CyrusOne Inc. has a market cap of US$5.7b, and is paying total annual CEO compensation of US$7.0m. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$800k. When we examined a selection of companies with market caps ranging from US$4.0b to US$12b, we found the median CEO compensation was US$7.2m.
That means Gary Wojtaszek receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance. So this free visualization of the analyst consensus on future earnings could help you make the right decision about whether to buy, sell, or hold.
You can see, below, how CEO compensation at CyrusOne has changed over time.
Is CyrusOne Inc. Growing?
Over the last three years CyrusOne Inc. has grown its earnings per share (EPS) by an average of 45% per year. It achieved revenue growth of 24% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.
Has CyrusOne Inc. Been A Good Investment?
Boasting a total shareholder return of 58% over three years, CyrusOne Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for Gary Wojtaszek is close enough to the median pay for a CEO of a similar sized company .
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling CyrusOne (free visualization of insider trades).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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 email@example.com.