In 2016 Jim Fish was appointed CEO of Waste Management, Inc. (NYSE:WM). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. 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 process should give us an idea about how appropriately the CEO is paid.
How Does Jim Fish's Compensation Compare With Similar Sized Companies?
Our data indicates that Waste Management, Inc. is worth US$48b, and total annual CEO compensation was reported as US$9.1m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$1.2m. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
That means Jim Fish receives fairly typical remuneration for the CEO of a large company. 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 Waste Management has changed from year to year.
Is Waste Management, Inc. Growing?
Over the last three years Waste Management, Inc. has grown its earnings per share (EPS) by an average of 19% per year (using a line of best fit). It achieved revenue growth of 4.9% over the 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. Shareholders might be interested in this free visualization of analyst forecasts.
Has Waste Management, Inc. Been A Good Investment?
Boasting a total shareholder return of 89% over three years, Waste Management, Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Jim Fish 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. Indeed, many might consider the pay rather modest, given the solid company performance! So you may want to check if insiders are buying Waste Management 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.
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