James Foster became the CEO of Charles River Laboratories International, Inc. (NYSE:CRL) in 1992. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. 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 James Foster's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Charles River Laboratories International, Inc. has a market cap of US$6.7b, and is paying total annual CEO compensation of US$14m. (This figure is for the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$1.2m. We looked at a group of companies with market capitalizations from US$4.0b to US$12b, and the median CEO total compensation was US$6.9m.
As you can see, James Foster is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Charles River Laboratories International, Inc. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Charles River Laboratories International has changed from year to year.
Is Charles River Laboratories International, Inc. Growing?
On average over the last three years, Charles River Laboratories International, Inc. has grown earnings per share (EPS) by 7.0% each year (using a line of best fit). It achieved revenue growth of 25% over the last year.
This revenue growth could really point to a brighter future. And the improvement in earnings per share is modest but respectable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. Shareholders might be interested in this free visualization of analyst forecasts.
Has Charles River Laboratories International, Inc. Been A Good Investment?
Boasting a total shareholder return of 58% over three years, Charles River Laboratories International, Inc. 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.
We compared total CEO remuneration at Charles River Laboratories International, Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
Over the last three years returns to investors have been great, though we might have liked stronger business growth. As a result of the juicy return to investors, the CEO remuneration may well be quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling Charles River Laboratories International shares (free trial).
If you want to buy a stock that is better than Charles River Laboratories International, this free list of high return, low debt companies is a great place to look.
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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.