In 2011 Don Slager was appointed CEO of Republic Services, Inc. (NYSE:RSG). This analysis aims first to contrast CEO compensation with other large companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Don Slager's Compensation Compare With Similar Sized Companies?
According to our data, Republic Services, Inc. has a market capitalization of US$29b, and paid its CEO total annual compensation worth US$12m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.1m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$11m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
That means Don Slager receives fairly typical remuneration for the CEO of a large company. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Republic Services has changed from year to year.
Is Republic Services, Inc. Growing?
On average over the last three years, Republic Services, Inc. has grown earnings per share (EPS) by 22% each year (using a line of best fit). Its revenue is up 1.8% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to check this free visual report on analyst forecasts for future earnings.
Has Republic Services, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Republic Services, Inc. for providing a total return of 69% 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.
Don Slager is paid around the same as most CEOs of large companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling Republic Services shares (free trial).
If you want to buy a stock that is better than Republic Services, this free list of high return, low debt companies is a great place to look.
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