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In 2006 Steven Bresky was appointed CEO of Seaboard Corporation (NYSEMKT:SEB). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.
How Does Steven Bresky's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Seaboard Corporation has a market cap of US$4.8b, and is paying total annual CEO compensation of US$2.7m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$960k. When we examined a selection of companies with market caps ranging from US$4.0b to US$12b, we found the median CEO total compensation was US$6.9m.
Most shareholders would consider it a positive that Steven Bresky takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at Seaboard has changed over time.
Is Seaboard Corporation Growing?
Over the last three years Seaboard Corporation has shrunk its earnings per share by an average of 43% per year (measured with a line of best fit). In the last year, its revenue is up 9.4%.
Few shareholders would be pleased to read that earnings per share are lower over three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Seaboard Corporation Been A Good Investment?
Boasting a total shareholder return of 44% over three years, Seaboard Corporation 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 Seaboard Corporation pays its CEO less than similar sized companies.
Steven Bresky is paid less than CEOs of similar size companies. While the company isn't growing on our analysis, shareholder returns have been good in recent years. Although we could see higher EPS growth, we'd argue the remuneration is not an issue, based on these observations. Whatever your view on compensation, you might want to check if insiders are buying or selling Seaboard shares (free trial).
If you want to buy a stock that is better than Seaboard, 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.