Yahoo Finance Here's What We Think About Avis Budget Group, Inc.'s (NASDAQ:CAR) CEO Pay
Larry De Shon has been the CEO of Avis Budget Group, Inc. (NASDAQ:CAR) since 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Avis Budget Group
How Does Larry De Shon's Compensation Compare With Similar Sized Companies?
Our data indicates that Avis Budget Group, Inc. is worth US$2.8b, and total annual CEO compensation is US$8.4m. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$1.1m. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO total compensation was US$5.1m.
Thus we can conclude that Larry De Shon receives more in total compensation than the median of a group of companies in the same market, and of similar size to Avis Budget Group, Inc.. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Avis Budget Group has changed over time.
Is Avis Budget Group, Inc. Growing?
Avis Budget Group, Inc. has increased its earnings per share (EPS) by an average of 24% a year, over the last three years (using a line of best fit). It achieved revenue growth of 1.1% 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 Avis Budget Group, Inc. Been A Good Investment?
With a three year total loss of 1.4%, Avis Budget Group, Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We compared the total CEO remuneration paid by Avis Budget Group, Inc., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. However, the returns to investors are far less impressive, over the same period. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Avis Budget Group.
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 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. Thank you for reading.
