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Is Carlisle Companies Incorporated's (NYSE:CSL) CEO Pay Justified?

Simply Wall St

In 2016 Chris Koch was appointed CEO of Carlisle Companies Incorporated (NYSE:CSL). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.

Check out our latest analysis for Carlisle Companies

How Does Chris Koch's Compensation Compare With Similar Sized Companies?

According to our data, Carlisle Companies Incorporated has a market capitalization of US$9.1b, and paid its CEO total annual compensation worth US$7.5m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.1m. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$4.0b to US$12b. The median total CEO compensation was US$6.5m.

So Chris Koch is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

The graphic below shows how CEO compensation at Carlisle Companies has changed from year to year.

NYSE:CSL CEO Compensation, January 12th 2020

Is Carlisle Companies Incorporated Growing?

On average over the last three years, Carlisle Companies Incorporated has grown earnings per share (EPS) by 26% each year (using a line of best fit). It achieved revenue growth of 8.0% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. It could be important to check this free visual depiction of what analysts expect for the future.

Has Carlisle Companies Incorporated Been A Good Investment?

Boasting a total shareholder return of 53% over three years, Carlisle Companies Incorporated has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Chris Koch is paid around the same as most CEOs of similar size companies.

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Shareholders may want to check for free if Carlisle Companies insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.