Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Geoffrey Martin became the CEO of CCL Industries Inc. (TSE:CCL.B) in 2008. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Geoffrey Martin's Compensation Compare With Similar Sized Companies?
Our data indicates that CCL Industries Inc. is worth CA$11b, and total annual CEO compensation is CA$4.9m. (This is based on the year to December 2018). That's below the compensation, last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$1.5m. When we examined a selection of companies with market caps ranging from CA$5.3b to CA$16b, we found the median CEO total compensation was CA$6.1m.
So Geoffrey Martin receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at CCL Industries has changed from year to year.
Is CCL Industries Inc. Growing?
CCL Industries Inc. has increased its earnings per share (EPS) by an average of 18% a year, over the last three years (using a line of best fit). It achieved revenue growth of 7.0% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to check this free visual report on analyst forecasts for future earnings.
Has CCL Industries Inc. Been A Good Investment?
Most shareholders would probably be pleased with CCL Industries Inc. for providing a total return of 45% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Geoffrey Martin is paid around the same as most CEOs of similar size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling CCL Industries shares (free trial).
If you want to buy a stock that is better than CCL Industries, 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.