Patrick Decker has been the CEO of Xylem Inc. (NYSE:XYL) since 2014. First, this article will compare CEO compensation with compensation at other large companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
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How Does Patrick Decker's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Xylem Inc. has a market cap of US$14b, and is paying total annual CEO compensation of US$8.3m. (This is based on the year to December 2018). That's just a smallish increase of 7.9% on last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.0m. 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. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
That means Patrick Decker receives fairly typical remuneration for the CEO of a large company. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Xylem, below.
Is Xylem Inc. Growing?
On average over the last three years, Xylem Inc. has grown earnings per share (EPS) by 19% each year (using a line of best fit). It achieved revenue growth of 7.7% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. It could be important to check this free visual depiction of what analysts expect for the future.
Has Xylem Inc. Been A Good Investment?
I think that the total shareholder return of 75%, over three years, would leave most Xylem Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Patrick Decker is paid around what is normal the leaders of larger companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Xylem.
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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