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In 2014 Todd Barlow was appointed CEO of Washington H. Soul Pattinson and Company Limited (ASX:SOL). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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 Todd Barlow's Compensation Compare With Similar Sized Companies?
Our data indicates that Washington H. Soul Pattinson and Company Limited is worth AU$5.6b, and total annual CEO compensation is AU$3.1m. (This is based on the year to July 2018). We think total compensation is more important but we note that the CEO salary is lower, at AU$1.4m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of AU$2.8b to AU$9.1b. The median total CEO compensation was AU$3.3m.
So Todd Barlow receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Washington H. Soul Pattinson has changed over time.
Is Washington H. Soul Pattinson and Company Limited Growing?
Over the last three years Washington H. Soul Pattinson and Company Limited has grown its earnings per share (EPS) by an average of 27% per year (using a line of best fit). Its revenue is up 19% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Washington H. Soul Pattinson and Company Limited Been A Good Investment?
I think that the total shareholder return of 54%, over three years, would leave most Washington H. Soul Pattinson and Company Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for Todd Barlow is close enough to the median pay for a CEO of a similar sized company .
The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! Shareholders may want to check for free if Washington H. Soul Pattinson insiders are buying or selling shares.
If you want to buy a stock that is better than Washington H. Soul Pattinson, this free list of high return, low debt companies is a great place to look.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.