Rodney Sacks has been the CEO of Monster Beverage Corporation (NASDAQ:MNST) since 1990. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Rodney Sacks's Compensation Compare With Similar Sized Companies?
Our data indicates that Monster Beverage Corporation is worth US$31b, and total annual CEO compensation was reported as US$14m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$800k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. 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. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
So Rodney Sacks is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Monster Beverage, below.
Is Monster Beverage Corporation Growing?
On average over the last three years, Monster Beverage Corporation has grown earnings per share (EPS) by 19% each year (using a line of best fit). Its revenue is up 11% over last year.
This demonstrates that the company has been improving recently. A good result. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Shareholders might be interested in this free visualization of analyst forecasts.
Has Monster Beverage Corporation Been A Good Investment?
Monster Beverage Corporation has generated a total shareholder return of 15% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
Rodney Sacks is paid around the same as most CEOs of large companies.
We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. As a result of these considerations, I would suggest the CEO pay is reasonable. So you may want to check if insiders are buying Monster Beverage shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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