Pietro Satriano has been the CEO of US Foods Holding Corp. (NYSE:USFD) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Pietro Satriano's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that US Foods Holding Corp. has a market cap of US$7.5b, and is paying total annual CEO compensation of US$8.6m. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at US$1.0m. We looked at a group of companies with market capitalizations from US$4.0b to US$12b, and the median CEO total compensation was US$6.9m.
So Pietro Satriano receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at US Foods Holding, below.
Is US Foods Holding Corp. Growing?
US Foods Holding Corp. has increased its earnings per share (EPS) by an average of 44% a year, over the last three years (using a line of best fit). In the last year, its revenue changed by just 0.8%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to check this free visual report on analyst forecasts for future earnings.
Has US Foods Holding Corp. Been A Good Investment?
I think that the total shareholder return of 42%, over three years, would leave most US Foods Holding Corp. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Pietro Satriano 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. So one could argue the CEO compensation is quite modest, if you consider company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at US Foods Holding.
If you want to buy a stock that is better than US Foods Holding, this free list of high return, low debt companies is a great place to look.
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