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How Should Investors Feel About California Water Service Group's (NYSE:CWT) CEO Pay?

Simply Wall St

Marty Kropelnicki became the CEO of California Water Service Group (NYSE:CWT) in 2013. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for California Water Service Group

How Does Marty Kropelnicki's Compensation Compare With Similar Sized Companies?

Our data indicates that California Water Service Group is worth US$2.4b, and total annual CEO compensation was reported as US$5.9m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$947k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO total compensation was US$5.1m.

So Marty Kropelnicki is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at California Water Service Group, below.

NYSE:CWT CEO Compensation, November 12th 2019

Is California Water Service Group Growing?

California Water Service Group has increased its earnings per share (EPS) by an average of 9.3% a year, over the last three years (using a line of best fit). In the last year, its revenue changed by just 0.4%.

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. Shareholders might be interested in this free visualization of analyst forecasts.

Has California Water Service Group Been A Good Investment?

Boasting a total shareholder return of 61% over three years, California Water Service Group 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.

In Summary...

Remuneration for Marty Kropelnicki is close enough to the median pay for a CEO of a similar sized company .

While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So we can conclude that on this analysis the CEO compensation seems pretty sound. Whatever your view on compensation, you might want to check if insiders are buying or selling California Water Service Group shares (free trial).

If you want to buy a stock that is better than California Water Service Group, this free list of high return, low debt companies is a great place to look.

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 editorial-team@simplywallst.com. 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.