Dan Poneman became the CEO of Centrus Energy Corp. (NYSEMKT:LEU) in 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Dan Poneman's Compensation Compare With Similar Sized Companies?
According to our data, Centrus Energy Corp. has a market capitalization of US$74m, and paid its CEO total annual compensation worth US$2.4m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$750k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$506k.
Thus we can conclude that Dan Poneman receives more in total compensation than the median of a group of companies in the same market, and of similar size to Centrus Energy Corp.. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Centrus Energy, below.
Is Centrus Energy Corp. Growing?
Centrus Energy Corp. has increased its earnings per share (EPS) by an average of 1.5% a year, over the last three years (using a line of best fit). It achieved revenue growth of 5.2% over the last year.
I'm not particularly impressed by the revenue growth, but I'm happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Centrus Energy Corp. Been A Good Investment?
Most shareholders would probably be pleased with Centrus Energy Corp. for providing a total return of 87% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
We examined the amount Centrus Energy Corp. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Over the last three years returns to investors have been great, though we might have liked stronger business growth. So, considering these tasty returns, the CEO compensation may be quite appropriate. So you may want to check if insiders are buying Centrus Energy 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.
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 email@example.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.