Chris Crane became the CEO of Exelon Corporation (NYSE:EXC) in 2012. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Chris Crane's Compensation Compare With Similar Sized Companies?
Our data indicates that Exelon Corporation is worth US$46b, and total annual CEO compensation is US$16m. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$1.3m. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$11m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
Thus we can conclude that Chris Crane receives more in total compensation than the median of a group of large companies in the same market as Exelon Corporation. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Exelon has changed over time.
Is Exelon Corporation Growing?
On average over the last three years, Exelon Corporation has grown earnings per share (EPS) by 22% each year (using a line of best fit). It achieved revenue growth of 1.3% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.
Has Exelon Corporation Been A Good Investment?
Boasting a total shareholder return of 52% over three years, Exelon Corporation has done well by shareholders. 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.
We compared total CEO remuneration at Exelon Corporation with the amount paid at other large companies. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. In addition, shareholders have done well over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling Exelon shares (free trial).
Important note: Exelon may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.