Kevin Clark has been the CEO of Aptiv PLC (NYSE:APTV) since 2015. 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. 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 Kevin Clark's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Aptiv PLC has a market cap of US$23b, and is paying total annual CEO compensation of US$14m. (This number is for the twelve months until December 2018). That's a modest increase of 2.3% on the prior year year. While we always look at total compensation first, we note that the salary component is less, at US$1.4m. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$11m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
So Kevin Clark 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.
The graphic below shows how CEO compensation at Aptiv has changed from year to year.
Is Aptiv PLC Growing?
Over the last three years Aptiv PLC has grown its earnings per share (EPS) by an average of 5.3% per year (using a line of best fit). It achieved revenue growth of 12% over the last year.
I would argue that the modest growth in revenue is a notable positive. And the improvement in earnings per share is modest but respectable. 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 Aptiv PLC Been A Good Investment?
Most shareholders would probably be pleased with Aptiv PLC for providing a total return of 43% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Remuneration for Kevin Clark is close enough to the median pay for a CEO of a large company .
The company isn't showing particularly great growth, but shareholder returns have been pleasing. So considering most shareholders would be happy, we'd say the CEO pay is appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Aptiv.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.