Is Sabre Corporation's (NASDAQ:SABR) CEO Paid At A Competitive Rate?
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Sean Menke has been the CEO of Sabre Corporation (NASDAQ:SABR) since 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. 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.
View our latest analysis for Sabre
How Does Sean Menke's Compensation Compare With Similar Sized Companies?
Our data indicates that Sabre Corporation is worth US$6.3b, and total annual CEO compensation is US$11m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$943k. We examined companies with market caps from US$4.0b to US$12b, and discovered that the median CEO total compensation of that group was US$6.9m.
As you can see, Sean Menke is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Sabre Corporation is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Sabre has changed from year to year.
Is Sabre Corporation Growing?
On average over the last three years, Sabre Corporation has grown earnings per share (EPS) by 10.0% each year (using a line of best fit). In the last year, its revenue is up 7.0%.
I'm not particularly impressed by the revenue growth, but it is good to see modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Shareholders might be interested in this free visualization of analyst forecasts.
Has Sabre Corporation Been A Good Investment?
Since shareholders would have lost about 14% over three years, some Sabre Corporation shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We compared total CEO remuneration at Sabre Corporation with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. Whatever your view on compensation, you might want to check if insiders are buying or selling Sabre shares (free trial).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
