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Does ABM Industries Incorporated's (NYSE:ABM) CEO Pay Compare Well With Peers?

Simply Wall St
·3 min read

Scott Salmirs became the CEO of ABM Industries Incorporated (NYSE:ABM) in 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for ABM Industries

How Does Scott Salmirs's Compensation Compare With Similar Sized Companies?

Our data indicates that ABM Industries Incorporated is worth US$2.7b, and total annual CEO compensation was reported as US$6.0m for the year to October 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$975k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO total compensation was US$4.9m.

That means Scott Salmirs receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at ABM Industries, below.

NYSE:ABM CEO Compensation, February 5th 2020
NYSE:ABM CEO Compensation, February 5th 2020

Is ABM Industries Incorporated Growing?

Over the last three years ABM Industries Incorporated has grown its earnings per share (EPS) by an average of 5.3% per year (using a line of best fit). In the last year, its revenue changed by just 0.9%.

I would argue that the improvement in revenue isn't particularly impressive, but I'm happy with the modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Shareholders might be interested in this free visualization of analyst forecasts.

Has ABM Industries Incorporated Been A Good Investment?

ABM Industries Incorporated has not done too badly by shareholders, with a total return of 5.9%, over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Scott Salmirs is paid around the same as most CEOs of similar size companies.

We think many would like to see better growth. While there is room for improvement, we haven't seen evidence to suggest the pay is too generous. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at ABM Industries.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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.