Rick McTaggart became the CEO of Consolidated Water Co Ltd (NASDAQ:CWCO) in 2004. First, this article will compare CEO compensation with compensation at similar sized 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 process should give us an idea about how appropriately the CEO is paid.
How Does Rick McTaggart’s Compensation Compare With Similar Sized Companies?
According to our data, Consolidated Water Co Ltd has a market capitalization of US$187m, and pays its CEO total annual compensation worth US$978k. (This number is for the twelve months until 2017). While we always look at total compensation first, we note that the salary component is less, at US$468k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$100m to US$400m. The median total CEO compensation was US$929k.
So Rick McTaggart 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 Consolidated Water, below.
Is Consolidated Water Co Ltd Growing?
On average over the last three years, Consolidated Water Co Ltd has grown earnings per share (EPS) by 2.9% each year. Its revenue is up 5.2% over last year.
I would argue that the improvement in revenue isn’t particularly impressive, but I’m happy with the modest EPS growth. It’s clear the performance has been quite decent, but it it falls short of outstanding,based on this information.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Consolidated Water Co Ltd Been A Good Investment?
Consolidated Water Co Ltd has served shareholders reasonably well, with a total return of 15% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
Rick McTaggart is paid around what is normal the leaders of comparable size companies.
The company isn’t showing particularly great growth, and shareholder turns haven’t been particularly inspiring in the last few years. But we don’t think the CEO compensation is a problem. Shareholders may want to check for free if Consolidated Water insiders are buying or selling shares.
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.