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Bill Carstanjen became the CEO of Churchill Downs Incorporated (NASDAQ:CHDN) in 2014. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.
How Does Bill Carstanjen's Compensation Compare With Similar Sized Companies?
According to our data, Churchill Downs Incorporated has a market capitalization of US$4.4b, and pays its CEO total annual compensation worth US$21m. (This figure is for the year to December 2018). Notably, that's an increase of 184% over the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.3m. 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$5.2m.
As you can see, Bill Carstanjen is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Churchill Downs Incorporated is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Churchill Downs, below.
Is Churchill Downs Incorporated Growing?
On average over the last three years, Churchill Downs Incorporated has grown earnings per share (EPS) by 42% each year (using a line of best fit). Its revenue is up 20% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. You might want to check this free visual report on analyst forecasts for future earnings.
Has Churchill Downs Incorporated Been A Good Investment?
Boasting a total shareholder return of 181% over three years, Churchill Downs Incorporated 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.
We examined the amount Churchill Downs Incorporated 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.
However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. So you may want to check if insiders are buying Churchill Downs shares with their own money (free access).
If you want to buy a stock that is better than Churchill Downs, 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 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.