Does ACCO Brands Corporation’s (NYSE:ACCO) CEO Pay Compare Well With Peers?
Boris Elisman became the CEO of ACCO Brands Corporation (NYSE:ACCO) in 2013. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for ACCO Brands
How Does Boris Elisman’s Compensation Compare With Similar Sized Companies?
According to our data, ACCO Brands Corporation has a market capitalization of US$857m, and pays its CEO total annual compensation worth US$5m. That’s a notable increase of 18% on last year. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO compensation was US$2m.
As you can see, Boris Elisman is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean ACCO Brands Corporation is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at ACCO Brands has changed over time.
Is ACCO Brands Corporation Growing?
ACCO Brands Corporation has increased its earnings per share (EPS) by an average of 12% a year, over the last three years In the last year, its revenue is up 8.7%.
This demonstrates that the company has been improving recently. A good result. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has ACCO Brands Corporation Been A Good Investment?
With a total shareholder return of 5.5% over three years, ACCO Brands Corporation has done okay by shareholders. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
In Summary…
We examined the amount ACCO Brands Corporation pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. We also note that, over the same time frame, shareholder returns haven’t been bad. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we’d recommend further research on management. So you may want to check if insiders are buying ACCO Brands Corporation shares with their own money (free access).
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
