Jeff Eckel became the CEO of Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE:HASI) in 2013. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Jeff Eckel's Compensation Compare With Similar Sized Companies?
According to our data, Hannon Armstrong Sustainable Infrastructure Capital, Inc. has a market capitalization of US$1.9b, and paid its CEO total annual compensation worth US$5.2m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$633k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$3.9m.
It would therefore appear that Hannon Armstrong Sustainable Infrastructure Capital, Inc. pays Jeff Eckel more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Hannon Armstrong Sustainable Infrastructure Capital has changed from year to year.
Is Hannon Armstrong Sustainable Infrastructure Capital, Inc. Growing?
Over the last three years Hannon Armstrong Sustainable Infrastructure Capital, Inc. has grown its earnings per share (EPS) by an average of 31% per year (using a line of best fit). It achieved revenue growth of 32% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Hannon Armstrong Sustainable Infrastructure Capital, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Hannon Armstrong Sustainable Infrastructure Capital, Inc. for providing a total return of 81% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
We examined the amount Hannon Armstrong Sustainable Infrastructure Capital, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Hannon Armstrong Sustainable Infrastructure Capital.
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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