John Hayes has been the CEO of Ball Corporation (NYSE:BLL) since 2011. First, this article will compare CEO compensation with compensation at other large companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does John Hayes’s Compensation Compare With Similar Sized Companies?
According to our data, Ball Corporation has a market capitalization of US$18b, and pays its CEO total annual compensation worth US$13m. (This number is for the twelve months until December 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$1.3m. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO compensation was US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts – even though some are quite a bit bigger than others).
So John Hayes receives a similar amount to the median CEO pay, amongst 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 Ball has changed over time.
Is Ball Corporation Growing?
On average over the last three years, Ball Corporation has grown earnings per share (EPS) by 17% each year (using a line of best fit). It achieved revenue growth of 5.9% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see modest revenue growth, suggesting the underlying business is healthy. Shareholders might be interested in this free visualization of analyst forecasts.
Has Ball Corporation Been A Good Investment?
Boasting a total shareholder return of 66% over three years, Ball Corporation has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Remuneration for John Hayes is close enough to the median pay for a CEO of a large 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! Shareholders may want to check for free if Ball insiders are buying or selling shares.
Important note: Ball may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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