Anthony Allott became the CEO of Silgan Holdings Inc (NASDAQ:SLGN) in 2006. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Anthony Allott’s Compensation Compare With Similar Sized Companies?
Our data indicates that Silgan Holdings Inc is worth US$2.6b, and total annual CEO compensation is US$3m. That’s actually a decrease on the year before. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO compensation was US$5m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at Silgan Holdings, below.
Is Silgan Holdings Inc Growing?
On average over the last three years, Silgan Holdings Inc has grown earnings per share (EPS) by 32% each year. In the last year, its revenue is up 12%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. IThis sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Silgan Holdings Inc Been A Good Investment?
With a three year total loss of 4.4%, Silgan Holdings Inc would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
It appears that Silgan Holdings Inc remunerates its CEO below most similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. Despite some positives, it is likely that shareholders wanted better returns, given the performance over the last three years. We’re not critical of the remuneration Anthony Allott receives, but it would be good to see improved returns to shareholders before the remuneration grows too much.
In this case we may want to look deeper into the company. There are some real positives and we could see improved returns in the longer term. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Silgan Holdings Inc (free visualization of insider trades).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.