Dave Ciesinski became the CEO of Lancaster Colony Corporation (NASDAQ:LANC) in 2017. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Dave Ciesinski's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Lancaster Colony Corporation has a market cap of US$4.4b, and reported total annual CEO compensation of US$3.6m for the year to June 2019. We think total compensation is more important but we note that the CEO salary is lower, at US$775k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO total compensation of that group was US$5.0m.
So Dave Ciesinski 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 Lancaster Colony, below.
Is Lancaster Colony Corporation Growing?
On average over the last three years, Lancaster Colony Corporation has grown earnings per share (EPS) by 9.0% each year (using a line of best fit). It achieved revenue growth of 7.1% over the last year.
I'd prefer higher revenue growth, but I'm happy with the modest EPS growth. Considering these factors I'd say performance has been pretty decent, though not amazing. It could be important to check this free visual depiction of what analysts expect for the future.
Has Lancaster Colony Corporation Been A Good Investment?
With a total shareholder return of 19% over three years, Lancaster Colony Corporation shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
Dave Ciesinski is paid around the same as most CEOs of similar size companies.
We think many would like to see better growth. While there is room for improvement, we haven't seen evidence to suggest the pay is too generous. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Lancaster Colony.
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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