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Don Slager became the CEO of Republic Services, Inc. (NYSE:RSG) in 2011. First, this article will compare CEO compensation with compensation at other large companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Don Slager's Compensation Compare With Similar Sized Companies?
According to our data, Republic Services, Inc. has a market capitalization of US$27b, and pays its CEO total annual compensation worth US$12m. (This figure is for the year to December 2018). That's just a smallish increase of 2.1% on last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.1m. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$12m. (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).
That means Don Slager receives fairly typical remuneration for the CEO of a large company. 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 Republic Services, below.
Is Republic Services, Inc. Growing?
Republic Services, Inc. has increased its earnings per share (EPS) by an average of 27% a year, over the last three years (using a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. It could be important to check this free visual depiction of what analysts expect for the future.
Has Republic Services, Inc. Been A Good Investment?
I think that the total shareholder return of 85%, over three years, would leave most Republic Services, Inc. shareholders smiling. 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.
Don Slager is paid around what is normal the leaders of larger companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling Republic Services shares (free trial).
Important note: Republic Services 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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.