Does Simpson Manufacturing Co Inc’s (NYSE:SSD) CEO Salary Compare Well With Others?
Karen Colonias became the CEO of Simpson Manufacturing Co Inc (NYSE:SSD) in 2012. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Simpson Manufacturing
How Does Karen Colonias’s Compensation Compare With Similar Sized Companies?
According to our data, Simpson Manufacturing Co Inc has a market capitalization of US$2.7b, and pays its CEO total annual compensation worth US$4.0m. We note that’s an increase of 31% above last year. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO compensation was US$4.9m.
So Karen Colonias is paid around the average of 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.
You can see, below, how CEO compensation at Simpson Manufacturing has changed over time.
Is Simpson Manufacturing Co Inc Growing?
Simpson Manufacturing Co Inc has increased its earnings per share (EPS) by an average of 20% a year, over the last three years It achieved revenue growth of 13% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Simpson Manufacturing Co Inc Been A Good Investment?
Most shareholders would probably be pleased with Simpson Manufacturing Co Inc for providing a total return of 63% over three years. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
In Summary…
Karen Colonias is paid around what is normal the leaders of comparable size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance!
Or you might rather take a peek at this analytical visualization of historic cash flow, 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.
