In 2009 Robert Sprowls was appointed CEO of American States Water Company (NYSE:AWR). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 method should give us information to assess how appropriately the company pays the CEO.
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How Does Robert Sprowls's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that American States Water Company has a market cap of US$2.6b, and is paying total annual CEO compensation of US$3.0m. (This figure is for the year to December 2018). That's less than last year. While we always look at total compensation first, we note that the salary component is less, at US$772k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$5.2m.
A first glance this seems like a real positive for shareholders, since Robert Sprowls is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at American States Water has changed over time.
Is American States Water Company Growing?
American States Water Company has increased its earnings per share (EPS) by an average of 3.2% a year, over the last three years (using a line of best fit). It achieved revenue growth of 1.7% over the last year.
I'd prefer higher revenue growth, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise. You might want to check this free visual report on analyst forecasts for future earnings.
Has American States Water Company Been A Good Investment?
Boasting a total shareholder return of 101% over three years, American States Water Company has done well by shareholders. 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.
It looks like American States Water Company pays its CEO less than similar sized companies.
It's well worth noting that while Robert Sprowls is paid below what is normal at companies of similar size, the returns have been very pleasing, over the last three years. So, while it might be nice to have better EPS growth, on our analysis the CEO compensation is quite modest. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at American States Water.
If you want to buy a stock that is better than American States Water, this free list of high return, low debt companies is a great place to look.
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