What Can We Make Of Cable One's (NYSE:CABO) CEO Compensation?
Julie Laulis has been the CEO of Cable One, Inc. (NYSE:CABO) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Cable One.
View our latest analysis for Cable One
How Does Total Compensation For Julie Laulis Compare With Other Companies In The Industry?
At the time of writing, our data shows that Cable One, Inc. has a market capitalization of US$13b, and reported total annual CEO compensation of US$2.7m for the year to December 2019. That is, the compensation was roughly the same as last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$575k.
For comparison, other companies in the industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$13m. That is to say, Julie Laulis is paid under the industry median. Moreover, Julie Laulis also holds US$18m worth of Cable One stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$575k | US$575k | 21% |
Other | US$2.1m | US$2.1m | 79% |
Total Compensation | US$2.7m | US$2.7m | 100% |
Talking in terms of the industry, salary represented approximately 22% of total compensation out of all the companies we analyzed, while other remuneration made up 78% of the pie. Although there is a difference in how total compensation is set, Cable One more or less reflects the market in terms of setting the salary. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Cable One, Inc.'s Growth Numbers
Cable One, Inc. has seen its earnings per share (EPS) increase by 28% a year over the past three years. In the last year, its revenue is up 17%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Cable One, Inc. Been A Good Investment?
We think that the total shareholder return of 216%, over three years, would leave most Cable One, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
As we noted earlier, Cable One pays its CEO lower than the norm for similar-sized companies belonging to the same industry. When taking into account the company's strong EPS growth over the past three years, it appears CEO compensation is modest. Plus, we can't ignore the impressive shareholder returns, and won't be surprised if some shareholders were to reward such excellent all-around performance with a raise.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 3 warning signs for Cable One that you should be aware of before investing.
Important note: Cable One is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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