In 2015 Jay Bachmann was appointed CEO of Continental Building Products, Inc. (NYSE:CBPX). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.
How Does Jay Bachmann's Compensation Compare With Similar Sized Companies?
According to our data, Continental Building Products, Inc. has a market capitalization of US$816m, and pays its CEO total annual compensation worth US$2.4m. (This number is for the twelve months until December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$577k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2.7m.
So Jay Bachmann receives a similar amount to the median CEO pay, amongst the companies we looked at. 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.
The graphic below shows how CEO compensation at Continental Building Products has changed from year to year.
Is Continental Building Products, Inc. Growing?
On average over the last three years, Continental Building Products, Inc. has grown earnings per share (EPS) by 29% each year (using a line of best fit). Its revenue is up 2.8% over last year.
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. It could be important to check this free visual depiction of what analysts expect for the future.
Has Continental Building Products, Inc. Been A Good Investment?
Continental Building Products, Inc. has generated a total shareholder return of 6.9% over three years, so most shareholders wouldn't be too disappointed. But they would probably prefer not to see CEO compensation far in excess of the median.
Jay Bachmann is paid around what is normal the leaders of comparable size companies.
We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. As a result of these considerations, I would suggest the CEO pay is reasonable. Shareholders may want to check for free if Continental Building Products insiders are buying or selling shares.
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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