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Should You Worry About Cable One, Inc.'s (NYSE:CABO) CEO Pay?

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In 2017 Julie Laulis was appointed CEO of Cable One, Inc. (NYSE:CABO). First, this article will compare CEO compensation with compensation at other large companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Cable One

How Does Julie Laulis's Compensation Compare With Similar Sized Companies?

According to our data, Cable One, Inc. has a market capitalization of US$10b, and paid its CEO total annual compensation worth US$2.7m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$575k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO total compensation to be 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.

Most shareholders would consider it a positive that Julie Laulis takes less in total compensation than the CEOs of most other large companies, leaving more 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 Cable One, below.

NYSE:CABO CEO Compensation, February 17th 2020
NYSE:CABO CEO Compensation, February 17th 2020

Is Cable One, Inc. Growing?

Cable One, Inc. has increased its earnings per share (EPS) by an average of 19% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 5.6%.

This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. It could be important to check this free visual depiction of what analysts expect for the future.

Has Cable One, Inc. Been A Good Investment?

Boasting a total shareholder return of 186% over three years, Cable One, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

It appears that Cable One, Inc. remunerates its CEO below most large companies.

Many would consider this to indicate that the pay is modest since the business is growing. The strong history of shareholder returns might even have some thinking that Julie Laulis deserves a raise! Most shareholders like to see a modestly paid CEO combined with strong performance by the company. It would be even more positive if company insiders are buying shares. So you may want to check if insiders are buying Cable One shares with their own money (free access).

Important note: Cable One 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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.

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. Thank you for reading.