Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Bryan Shinn became the CEO of U.S. Silica Holdings, Inc. (NYSE:SLCA) in 2012. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. 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 Bryan Shinn's Compensation Compare With Similar Sized Companies?
Our data indicates that U.S. Silica Holdings, Inc. is worth US$950m, and total annual CEO compensation is US$4.2m. (This is based on the year to December 2018). That's below the compensation, last year. While we always look at total compensation first, we note that the salary component is less, at US$731k. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO total compensation was US$2.6m.
As you can see, Bryan Shinn is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean U.S. Silica Holdings, Inc. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at U.S. Silica Holdings, below.
Is U.S. Silica Holdings, Inc. Growing?
U.S. Silica Holdings, Inc. has reduced its earnings per share by an average of 6.8% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 16%.
Few shareholders would be pleased to read that earnings per share are lower over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has U.S. Silica Holdings, Inc. Been A Good Investment?
With a three year total loss of 52%, U.S. Silica Holdings, Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
We examined the amount U.S. Silica Holdings, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
We think many shareholders would be underwhelmed with the business growth over the last three years.
Arguably worse, investors are without a positive return for the last three years. In our opinion the CEO might be paid too generously! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling U.S. Silica Holdings (free visualization of insider trades).
Important note: U.S. Silica Holdings may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE 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 firstname.lastname@example.org. 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.