In 2014 Susan Story was appointed CEO of American Water Works Company, Inc. (NYSE:AWK). This analysis aims first to contrast CEO compensation with other large 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Susan Story's Compensation Compare With Similar Sized Companies?
Our data indicates that American Water Works Company, Inc. is worth US$19b, and total annual CEO compensation is US$5.0m. (This number is for the twelve months until December 2018). Notably, that's an increase of 14% over the year before. We think total compensation is more important but we note that the CEO salary is lower, at US$944k. We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO total compensation to be US$11m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
This would give shareholders a good impression of the company, since most large companies pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at American Water Works Company, below.
Is American Water Works Company, Inc. Growing?
Over the last three years, American Water Works Company, Inc. has not seen its earnings per share change much, though there is a positive trend. In the last year, its revenue is up 2.5%.
I'd prefer higher revenue growth, but I'm happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise. It could be important to check this free visual depiction of what analysts expect for the future.
Has American Water Works Company, Inc. Been A Good Investment?
Most shareholders would probably be pleased with American Water Works Company, Inc. for providing a total return of 61% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
It looks like American Water Works Company, Inc. pays its CEO less than the average at large companies.
Susan Story is paid less than what is normal at large companies, and the total shareholder return has been pleasing over the last three years. We would like to see EPS growth, but in our view it seems the CEO is modestly remunerated. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at American Water Works Company.
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 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.