Brad Shaw became the CEO of Shaw Communications Inc. (TSE:SJR.B) in 2010. First, this article will compare CEO compensation with compensation at other large companies. Next, we'll consider growth that the business demonstrates. 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 Brad Shaw's Compensation Compare With Similar Sized Companies?
According to our data, Shaw Communications Inc. has a market capitalization of CA$13b, and pays its CEO total annual compensation worth CA$7.6m. (This is based on the year to August 2018). While we always look at total compensation first, we note that the salary component is less, at CA$2.0m. We looked at a group of companies with market capitalizations over CA$11b and the median CEO total compensation was CA$9.1m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
So Brad Shaw receives a similar amount to the median CEO pay, amongst the companies we looked at. 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 Shaw Communications has changed over time.
Is Shaw Communications Inc. Growing?
On average over the last three years, Shaw Communications Inc. has shrunk earnings per share by 17% each year (measured with a line of best fit). Its revenue is up 5.2% over last year.
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. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Shaw Communications Inc. Been A Good Investment?
With a total shareholder return of 13% over three years, Shaw Communications Inc. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
Brad Shaw is paid around what is normal the leaders of larger companies.
We feel that earnings per share have been a bit disappointing, but and we don't think the total returns are amazing. We're not saying the CEO pay is too generous, but one might argue that the company should improve returns to shareholders before increasing it. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Shaw Communications (free visualization of insider trades).
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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