John Wasz has been the CEO of Global Brass and Copper Holdings, Inc. (NYSE:BRSS) since 2014. First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
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How Does John Wasz’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Global Brass and Copper Holdings, Inc. has a market cap of US$568m, and is paying total annual CEO compensation of US$3.9m. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$825k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO compensation of that group was US$1.6m.
Thus we can conclude that John Wasz receives more in total compensation than the median of a group of companies in the same market, and of similar size to Global Brass and Copper Holdings, Inc.. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Global Brass and Copper Holdings has changed over time.
Is Global Brass and Copper Holdings, Inc. Growing?
On average over the last three years, Global Brass and Copper Holdings, Inc. has grown earnings per share (EPS) by 19% each year (using a line of best fit). It achieved revenue growth of 20% over the 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.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Global Brass and Copper Holdings, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Global Brass and Copper Holdings, Inc. for providing a total return of 45% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared the total CEO remuneration paid by Global Brass and Copper Holdings, Inc., and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. On top of that, in the same period, returns to shareholders have been great. So, considering this good performance, the CEO compensation may be quite appropriate. Whatever your view on compensation, you might want to check if insiders are buying or selling Global Brass and Copper Holdings shares (free trial).
Or you might prefer examine intently this intuitive graph showing past 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 email@example.com.