Tom Rutledge has been the CEO of Charter Communications, Inc. (NASDAQ:CHTR) since 2012. First, this article will compare CEO compensation with compensation at other large companies. Next, we'll consider growth that the business demonstrates. 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.
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How Does Tom Rutledge's Compensation Compare With Similar Sized Companies?
According to our data, Charter Communications, Inc. has a market capitalization of US$94b, and pays its CEO total annual compensation worth US$8.2m. (This number is for the twelve months until December 2018). That's a fairly small increase of 4.4% on year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$2.0m. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$12m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
That means Tom Rutledge receives fairly typical remuneration for the CEO of a large company. 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 Charter Communications, below.
Is Charter Communications, Inc. Growing?
Charter Communications, Inc. has increased its earnings per share (EPS) by an average of 26% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 5.0%.
This shows that the company has improved itself over the last few years. Good news for shareholders. 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 Charter Communications, Inc. Been A Good Investment?
I think that the total shareholder return of 66%, over three years, would leave most Charter Communications, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Tom Rutledge is paid around the same as most CEOs of large companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling Charter Communications shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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