Is Alexander & Baldwin, Inc.'s (NYSE:ALEX) CEO Paid Enough Relative To Peers?
In 2016 Chris Benjamin was appointed CEO of Alexander & Baldwin, Inc. (NYSE:ALEX). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Alexander & Baldwin
How Does Chris Benjamin's Compensation Compare With Similar Sized Companies?
According to our data, Alexander & Baldwin, Inc. has a market capitalization of US$1.5b, and paid its CEO total annual compensation worth US$3.5m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$665k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO total compensation was US$3.9m.
That means Chris Benjamin 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.
You can see a visual representation of the CEO compensation at Alexander & Baldwin, below.
Is Alexander & Baldwin, Inc. Growing?
Over the last three years Alexander & Baldwin, Inc. has shrunk its earnings per share by an average of 37% per year (measured with a line of best fit). It achieved revenue growth of 32% over the last year.
Investors should note that, over three years, earnings per share are down. On the other hand, the strong revenue growth suggests the business is growing. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. You might want to check this free visual report on analyst forecasts for future earnings.
Has Alexander & Baldwin, Inc. Been A Good Investment?
Given the total loss of 26% over three years, many shareholders in Alexander & Baldwin, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Chris Benjamin is paid around the same as most CEOs of similar size companies.
The company cannot boast particularly strong per share growth. And we think the shareholder returns - over three years - have been underwhelming. So suffice it to say we don't think the compensation is modest. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Alexander & Baldwin (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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.
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. Thank you for reading.
