Dan Caruso became the CEO of Zayo Group Holdings, Inc. (NYSE:ZAYO) in 2007. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
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How Does Dan Caruso’s Compensation Compare With Similar Sized Companies?
Our data indicates that Zayo Group Holdings, Inc. is worth US$6.5b, and total annual CEO compensation is US$7.3m. (This is based on the year to 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$18k. We examined companies with market caps from US$4.0b to US$12b, and discovered that the median CEO compensation of that group was US$6.4m.
So Dan Caruso is paid around the average of the companies we looked at. 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 Zayo Group Holdings, below.
Is Zayo Group Holdings, Inc. Growing?
Zayo Group Holdings, Inc. has increased its earnings per share (EPS) by an average of 102% a year, over the last three years (using a line of best fit). Its revenue is up 11% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Zayo Group Holdings, Inc. Been A Good Investment?
With a total shareholder return of 13% over three years, Zayo Group Holdings, Inc. shareholders would, in general, be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
Dan Caruso 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. So upon reflection one could argue that the CEO pay is quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Zayo Group Holdings.
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow 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 firstname.lastname@example.org.