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In 2013 Jeff Eckel was appointed CEO of Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE:HASI). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 Jeff Eckel's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Hannon Armstrong Sustainable Infrastructure Capital, Inc. has a market cap of US$1.8b, and is paying total annual CEO compensation of US$5.2m. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$633k. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO total compensation was US$4.0m.
That means Jeff Eckel receives fairly typical remuneration for the CEO of a company that size. 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.
You can see a visual representation of the CEO compensation at Hannon Armstrong Sustainable Infrastructure Capital, below.
Is Hannon Armstrong Sustainable Infrastructure Capital, Inc. Growing?
Over the last three years Hannon Armstrong Sustainable Infrastructure Capital, Inc. has grown its earnings per share (EPS) by an average of 40% per year (using a line of best fit). It achieved revenue growth of 76% over the last year.
This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. It could be important to check this free visual depiction of what analysts expect for the future.
Has Hannon Armstrong Sustainable Infrastructure Capital, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Hannon Armstrong Sustainable Infrastructure Capital, Inc. for providing a total return of 56% over three years. 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.
Jeff Eckel is paid around the same as most CEOs of similar size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Hannon Armstrong Sustainable Infrastructure Capital.
Important note: Hannon Armstrong Sustainable Infrastructure Capital 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 firstname.lastname@example.org. 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.