Dean Connor has been the CEO of Sun Life Financial Inc. (TSE:SLF) since 2011. This analysis aims first to contrast CEO compensation with other large companies. After that, we will consider the growth in the business. 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.
How Does Dean Connor's Compensation Compare With Similar Sized Companies?
Our data indicates that Sun Life Financial Inc. is worth CA$36b, and total annual CEO compensation was reported as CA$9.7m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CA$1.1m. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We took a group of companies with market capitalizations over CA$11b, and calculated the median CEO total compensation to be CA$9.3m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
So Dean Connor receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Sun Life Financial has changed over time.
Is Sun Life Financial Inc. Growing?
Sun Life Financial Inc. has increased its earnings per share (EPS) by an average of 1.8% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 32%.
I like the look of the strong year-on-year improvement in revenue. And in that context, the modest EPS improvement certainly isn't shabby. I'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. Shareholders might be interested in this free visualization of analyst forecasts.
Has Sun Life Financial Inc. Been A Good Investment?
I think that the total shareholder return of 34%, over three years, would leave most Sun Life Financial Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for Dean Connor is close enough to the median pay for a CEO of a large company .
While the growth could be better, the shareholder returns are clearly good. So we can conclude that on this analysis the CEO compensation seems pretty sound. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Sun Life Financial (free visualization of insider trades).
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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