Marty Kropelnicki has been the CEO of California Water Service Group (NYSE:CWT) since 2013. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. 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 Marty Kropelnicki’s Compensation Compare With Similar Sized Companies?
According to our data, California Water Service Group has a market capitalization of US$2.2b, and pays its CEO total annual compensation worth US$7.8m. (This is based on the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$921k. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO compensation was US$3.5m.
Thus we can conclude that Marty Kropelnicki receives more in total compensation than the median of a group of companies in the same market, and of similar size to California Water Service Group. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at California Water Service Group has changed over time.
Is California Water Service Group Growing?
On average over the last three years, California Water Service Group has grown earnings per share (EPS) by 14% each year. It achieved revenue growth of 4.6% over the last year.
This demonstrates that the company has been improving recently. A good result. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.
You might want to check this free visual report on analyst forecasts for future earnings.
Has California Water Service Group Been A Good Investment?
Boasting a total shareholder return of 115% over three years, California Water Service Group has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
We compared total CEO remuneration at California Water Service Group with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. Even better, returns to shareholders have been plentiful, over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. So you may want to check if insiders are buying California Water Service Group shares with their own money (free access).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.