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Should You Worry About Consolidated Communications Holdings Inc’s (NASDAQ:CNSL) CEO Pay Cheque?

Bob Udell became the CEO of Consolidated Communications Holdings Inc (NASDAQ:CNSL) in 2015. First, this article will compare CEO compensation with compensation at similar sized 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. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Consolidated Communications Holdings

How Does Bob Udell’s Compensation Compare With Similar Sized Companies?

Our data indicates that Consolidated Communications Holdings Inc is worth US$919m, and total annual CEO compensation is US$2.1m. (This number is for the twelve months until 2017). While we always look at total compensation first, we note that the salary component is less, at US$425k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2.2m.

So Bob Udell 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 a visual representation of the CEO compensation at Consolidated Communications Holdings, below.

NasdaqGS:CNSL CEO Compensation December 5th 18

Is Consolidated Communications Holdings Inc Growing?

Consolidated Communications Holdings Inc has increased its earnings per share (EPS) by an average of 74% a year, over the last three years Its revenue is up 60% over last year.

This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see.

You might want to check this free visual report on analyst forecasts for future earnings.

Has Consolidated Communications Holdings Inc Been A Good Investment?

Given the total loss of 27% over three years, many shareholders in Consolidated Communications Holdings Inc are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary…

Bob Udell is paid around the same as most CEOs of similar size companies.

We’d say the company can boast of its EPS growth, but it’s disappointing to see negative shareholder returns over three years. Considering the the positives we don’t think the CEO pays is too high, but it’s certainly hard to argue it is too low. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Consolidated Communications Holdings.

Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.