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Is Sensata Technologies Holding plc's (NYSE:ST) CEO Pay Fair?

Simply Wall St

Martha Sullivan has been the CEO of Sensata Technologies Holding plc (NYSE:ST) since 2013. First, this article will compare CEO compensation with compensation at similar sized companies. 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. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Sensata Technologies Holding

How Does Martha Sullivan's Compensation Compare With Similar Sized Companies?

Our data indicates that Sensata Technologies Holding plc is worth US$7.0b, and total annual CEO compensation is US$5.8m. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$939k. 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$6.9m.

That means Martha Sullivan receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

The graphic below shows how CEO compensation at Sensata Technologies Holding has changed from year to year.

NYSE:ST CEO Compensation, August 29th 2019

Is Sensata Technologies Holding plc Growing?

On average over the last three years, Sensata Technologies Holding plc has grown earnings per share (EPS) by 24% each year (using a line of best fit). Revenue was pretty flat on last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.

Has Sensata Technologies Holding plc Been A Good Investment?

Sensata Technologies Holding plc has generated a total shareholder return of 14% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Martha Sullivan is paid around what is normal the leaders of comparable size companies.

We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. So considering these factors, we think the CEO pay is probably quite reasonable. So you may want to check if insiders are buying Sensata Technologies Holding shares with their own money (free access).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.