J. Harrison has been the CEO of Coca-Cola Consolidated, Inc. (NASDAQ:COKE) since 1994. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does J. Harrison's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Coca-Cola Consolidated, Inc. has a market cap of US$2.0b, and reported total annual CEO compensation of US$12m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$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 looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO total compensation was US$3.9m.
As you can see, J. Harrison is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Coca-Cola Consolidated, Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Coca-Cola Consolidated, below.
Is Coca-Cola Consolidated, Inc. Growing?
Coca-Cola Consolidated, Inc. has reduced its earnings per share by an average of 40% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 4.5% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Coca-Cola Consolidated, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Coca-Cola Consolidated, Inc. for providing a total return of 63% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared total CEO remuneration at Coca-Cola Consolidated, Inc. 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.
Earnings per share have not grown in three years, and the revenue growth fails to impress us. On the other hand, returns have been good, so the company is doing something right. Given this situation we doubt shareholders are particularly concerned about the CEO compensation. Shareholders may want to check for free if Coca-Cola Consolidated insiders are buying or selling shares.
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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