Dave Nunes has been the CEO of Rayonier Inc. (NYSE:RYN) since 2014. First, this article will compare CEO compensation with compensation at similar sized 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 Dave Nunes's Compensation Compare With Similar Sized Companies?
Our data indicates that Rayonier Inc. is worth US$3.7b, and total annual CEO compensation was reported as US$4.3m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$694k. 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 examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO total compensation of that group was US$5.1m.
That means Dave Nunes receives fairly typical remuneration for the CEO of a company that size. 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 Rayonier has changed over time.
Is Rayonier Inc. Growing?
Rayonier Inc. has reduced its earnings per share by an average of 25% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is down 15%.
Sadly for shareholders, earnings per share are actually down, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has Rayonier Inc. Been A Good Investment?
Rayonier Inc. has served shareholders reasonably well, with a total return of 22% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
Remuneration for Dave Nunes is close enough to the median pay for a CEO of a similar sized company .
We're not seeing great strides in earnings per share, and total returns were decent but not amazing in the last three years. We do not think the CEO pay is a problem, but it's probably fair to say that many shareholders would like to see improved performance, before any pay rise occurs. Shareholders may want to check for free if Rayonier insiders are buying or selling shares.
Important note: Rayonier may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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