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Joe Raver became the CEO of Hillenbrand, Inc. (NYSE:HI) in 2013. 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.
How Does Joe Raver's Compensation Compare With Similar Sized Companies?
Our data indicates that Hillenbrand, Inc. is worth US$2.5b, and total annual CEO compensation was reported as US$5.3m for the year to September 2018. While we always look at total compensation first, we note that the salary component is less, at US$810k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$5.1m.
That means Joe Raver receives fairly typical remuneration for the CEO of a company that size. 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 Hillenbrand, below.
Is Hillenbrand, Inc. Growing?
Over the last three years, Hillenbrand, Inc. has not seen its earnings per share change much, though there is a positive trend. Its revenue is up 2.1% over last year.
I'd prefer higher revenue growth, but it is good to see modest EPS growth. Considering these factors I'd say performance has been pretty decent, though not amazing. You might want to check this free visual report on analyst forecasts for future earnings.
Has Hillenbrand, Inc. Been A Good Investment?
Given the total loss of 7.3% over three years, many shareholders in Hillenbrand, Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
Joe Raver is paid around what is normal the leaders of comparable size companies.
The company cannot boast particularly strong per share growth. And we think the shareholder returns - over three years - have been underwhelming. So it would take a bold person to suggest the pay is too modest. So you may want to check if insiders are buying Hillenbrand shares with their own money (free access).
Important note: Hillenbrand 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.
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.
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