How Much Does Berry's (NASDAQ:BRY) CEO Make?
Trem Smith is the CEO of Berry Corporation (NASDAQ:BRY), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
View our latest analysis for Berry
Comparing Berry Corporation's CEO Compensation With the industry
At the time of writing, our data shows that Berry Corporation has a market capitalization of US$316m, and reported total annual CEO compensation of US$5.3m for the year to December 2019. That's a slight decrease of 4.3% on the prior year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$650k.
In comparison with other companies in the industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$2.0m. This suggests that Trem Smith is paid more than the median for the industry. Moreover, Trem Smith also holds US$1.1m worth of Berry stock directly under their own name.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$650k | US$650k | 12% |
Other | US$4.7m | US$4.9m | 88% |
Total Compensation | US$5.3m | US$5.6m | 100% |
Speaking on an industry level, nearly 15% of total compensation represents salary, while the remainder of 85% is other remuneration. In Berry's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Berry Corporation's Growth
Over the past three years, Berry Corporation has seen its earnings per share (EPS) grow by 66% per year. It saw its revenue drop 15% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Berry Corporation Been A Good Investment?
Since shareholders would have lost about 54% over three years, some Berry Corporation investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
As we touched on above, Berry Corporation is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But the company has impressed with its EPS growth, but shareholder returns — over the same period — have been disappointing. Although we'd stop short of calling it inappropriate, we think Trem is earning a very handsome sum.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 2 warning signs for Berry that investors should look into moving forward.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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