Is Premium Brands Holdings Corporation (TSE:PBH) Overpaying Its CEO?
George Paleologou has been the CEO of Premium Brands Holdings Corporation (TSE:PBH) since 2008. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Premium Brands Holdings
How Does George Paleologou's Compensation Compare With Similar Sized Companies?
Our data indicates that Premium Brands Holdings Corporation is worth CA$3.3b, and total annual CEO compensation was reported as CA$2.6m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CA$800k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. 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$2.9m.
That means George Paleologou receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Premium Brands Holdings has changed over time.
Is Premium Brands Holdings Corporation Growing?
On average over the last three years, Premium Brands Holdings Corporation has grown earnings per share (EPS) by 4.7% each year (using a line of best fit). Its revenue is up 28% over last year.
It's hard to interpret the strong revenue growth as anything other than a positive. Combined with modest EPS growth, we get a good impression of the company. I wouldn't say this is necessarily top notch growth, but it is certainly promising. You might want to check this free visual report on analyst forecasts for future earnings.
Has Premium Brands Holdings Corporation Been A Good Investment?
Most shareholders would probably be pleased with Premium Brands Holdings Corporation for providing a total return of 43% over three years. 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.
In Summary...
George Paleologou is paid around the same as most CEOs of similar size companies.
While the growth could be better, the shareholder returns are clearly good. So all things considered I'd venture that the CEO pay is appropriate. Whatever your view on compensation, you might want to check if insiders are buying or selling Premium Brands Holdings shares (free trial).
If you want to buy a stock that is better than Premium Brands Holdings, this free list of high return, low debt companies is a great place to look.
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