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Tom Corrick became the CEO of Boise Cascade Company (NYSE:BCC) in 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Tom Corrick's Compensation Compare With Similar Sized Companies?
According to our data, Boise Cascade Company has a market capitalization of US$1.1b, and pays its CEO total annual compensation worth US$3.9m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$855k. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO total compensation was US$2.7m.
Thus we can conclude that Tom Corrick receives more in total compensation than the median of a group of companies in the same market, and of similar size to Boise Cascade Company. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Boise Cascade, below.
Is Boise Cascade Company Growing?
Over the last three years Boise Cascade Company has grown its earnings per share (EPS) by an average of 10% per year (using a line of best fit). In the last year, its revenue is up 4.6%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Shareholders might be interested in this free visualization of analyst forecasts.
Has Boise Cascade Company Been A Good Investment?
With a total shareholder return of 4.9% over three years, Boise Cascade Company has done okay by shareholders. But they would probably prefer not to see CEO compensation far in excess of the median.
We examined the amount Boise Cascade Company pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. We also think investors are doing ok, over the same time period. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't call the CEO pay problematic. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Boise Cascade (free visualization of insider trades).
Important note: Boise Cascade 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.
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.