Should You Worry About Rayonier Inc’s (NYSE:RYN) CEO Salary Level?
Dave Nunes has been the CEO of Rayonier Inc (NYSE:RYN) since 2014. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Rayonier
How Does Dave Nunes’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Rayonier Inc has a market cap of US$4.1b, and is paying total annual CEO compensation of US$3.7m. That’s a fairly small increase of 6.5% on year before. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO compensation of that group was US$4.9m.
So Dave Nunes receives a similar amount to the median CEO pay, amongst 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, below, how CEO compensation at Rayonier has changed over time.
Is Rayonier Inc Growing?
On average over the last three years, Rayonier Inc has grown earnings per share (EPS) by 24% each year. It achieved revenue growth of 7.5% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s also good to see modest revenue growth, suggesting the underlying business is healthy.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Rayonier Inc Been A Good Investment?
Most shareholders would probably be pleased with Rayonier Inc for providing a total return of 46% over three years. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
In Summary…
Remuneration for Dave Nunes is close enough to the median pay for a CEO of a similar sized company .
The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance!
Or you might prefer examine intently this intuitive graph showing past 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.
