Steven Bresky became the CEO of Seaboard Corporation (NYSEMKT:SEB) in 2006. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Steven Bresky's Compensation Compare With Similar Sized Companies?
Our data indicates that Seaboard Corporation is worth US$4.8b, and total annual CEO compensation was reported as US$2.7m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$960k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from US$4.0b to US$12b, and the median CEO total compensation was US$6.4m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Seaboard has changed over time.
Is Seaboard Corporation Growing?
Seaboard Corporation has reduced its earnings per share by an average of 71% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 2.9% over the last year.
Unfortunately, earnings per share have trended lower over the last 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. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Seaboard Corporation Been A Good Investment?
Seaboard Corporation has generated a total shareholder return of 11% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
It appears that Seaboard Corporation remunerates its CEO below most similar sized companies.
The compensation paid to Steven Bresky is lower than is usual at similar sized companies. But the company lacks earnings per share growth, and returns to shareholders are less than stellar. So while shareholders shouldn't be overly concerned about CEO compensation, we suspect most would prefer see improved performance, before increasing pay. So you may want to check if insiders are buying Seaboard shares with their own money (free access).
If you want to buy a stock that is better than Seaboard, this free list of high return, low debt companies is a great place to look.
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