In 2012 Jim Meyer was appointed CEO of Sirius XM Holdings Inc. (NASDAQ:SIRI). First, this article will compare CEO compensation with compensation at other large companies. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Jim Meyer’s Compensation Compare With Similar Sized Companies?
According to our data, Sirius XM Holdings Inc. has a market capitalization of US$28b, and pays its CEO total annual compensation worth US$9.7m. (This number is for the twelve months until December 2017). While we always look at total compensation first, we note that the salary component is less, at US$1.8m. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO compensation was US$11m. Once you start looking at very large companies, you need to take a broader range, because there simply aren’t that many of them.
So Jim Meyer is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Sirius XM Holdings has changed over time.
Is Sirius XM Holdings Inc. Growing?
Over the last three years Sirius XM Holdings Inc. has grown its earnings per share (EPS) by an average of 24% per year (using a line of best fit). In the last year, its revenue is up 6.4%.
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 Sirius XM Holdings Inc. Been A Good Investment?
I think that the total shareholder return of 56%, over three years, would leave most Sirius XM Holdings Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Jim Meyer is paid around the same as most CEOs of large companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Whatever your view on compensation, you might want to check if insiders are buying or selling Sirius XM Holdings shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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