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Mike Medline became the CEO of Empire Company Limited (TSE:EMP.A) in 2017. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Mike Medline's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Empire Company Limited has a market cap of CA$9.2b, and is paying total annual CEO compensation of CA$5.5m. (This is based on the year to May 2018). While we always look at total compensation first, we note that the salary component is less, at CA$900k. We looked at a group of companies with market capitalizations from CA$5.2b to CA$16b, and the median CEO total compensation was CA$5.6m.
That means Mike Medline receives fairly typical remuneration for the CEO of a company that size. 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 a visual representation of the CEO compensation at Empire, below.
Is Empire Company Limited Growing?
On average over the last three years, Empire Company Limited has grown earnings per share (EPS) by 126% each year (using a line of best fit). In the last year, its revenue is up 3.9%.
This shows that the company has improved itself over the last few years. Good news for shareholders. 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 Empire Company Limited Been A Good Investment?
Boasting a total shareholder return of 73% over three years, Empire Company Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for Mike Medline is close enough to the median pay for a CEO of a similar sized company .
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! So you may want to check if insiders are buying Empire shares with their own money (free access).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.