Doug Pertz became the CEO of The Brink's Company (NYSE:BCO) in 2016. First, this article will compare CEO compensation with compensation at similar sized 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 Doug Pertz's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that The Brink's Company has a market cap of US$4.5b, and reported total annual CEO compensation of US$10m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$975k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO total compensation of that group was US$5.1m.
As you can see, Doug Pertz is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean The Brink's Company is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Brink's has changed from year to year.
Is The Brink's Company Growing?
On average over the last three years, The Brink's Company has shrunk earnings per share by 32% each year (measured with a line of best fit). In the last year, its revenue is up 4.9%.
Sadly for shareholders, earnings per share are actually down, over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. You might want to check this free visual report on analyst forecasts for future earnings.
Has The Brink's Company Been A Good Investment?
I think that the total shareholder return of 114%, over three years, would leave most The Brink's Company shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared the total CEO remuneration paid by The Brink's Company, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
We think many shareholders would be underwhelmed with the business growth over the last three years. However, we can't argue with the strong returns to shareholders, over the same time period. Given this situation we doubt shareholders are particularly concerned about the CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Brink's.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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