Jim Meyer has been the CEO of Sirius XM Holdings Inc. (NASDAQ:SIRI) since 2012. First, this article will compare CEO compensation with compensation at other large companies. Next, we'll consider growth that the business demonstrates. 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.
How Does Jim Meyer's Compensation Compare With Similar Sized Companies?
According to our data, Sirius XM Holdings Inc. has a market capitalization of US$30b, and paid its CEO total annual compensation worth US$18m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$2.0m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$11m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
It would therefore appear that Sirius XM Holdings Inc. pays Jim Meyer more than the median CEO remuneration at large companies, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Sirius XM Holdings, below.
Is Sirius XM Holdings Inc. Growing?
On average over the last three years, Sirius XM Holdings Inc. has grown earnings per share (EPS) by 17% each year (using a line of best fit). It achieved revenue growth of 27% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Sirius XM Holdings Inc. Been A Good Investment?
I think that the total shareholder return of 57%, over three years, would leave most Sirius XM Holdings Inc. shareholders smiling. 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.
We compared total CEO remuneration at Sirius XM Holdings Inc. with the amount paid at other large companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. In addition, shareholders have done well over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. So you may want to check if insiders are buying Sirius XM Holdings shares with their own money (free access).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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