Yahoo Finance Should You Worry About Carlsberg A/S's (CPH:CARL B) CEO Salary Level?
In 2015 Cees ´t Hart was appointed CEO of Carlsberg A/S (CPH:CARL B). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. After that, we will consider the growth in the business. 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.
Check out our latest analysis for Carlsberg
How Does Cees ´t Hart's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Carlsberg A/S has a market cap of ø149b, and is paying total annual CEO compensation of ø53m. (This number is for the twelve months until December 2018). We think total compensation is more important but we note that the CEO salary is lower, at ø12m. We looked at a group of companies with market capitalizations over ø54b and the median CEO total compensation was ø15m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
It would therefore appear that Carlsberg A/S pays Cees ´t Hart 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 get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Carlsberg has changed from year to year.
Is Carlsberg A/S Growing?
Carlsberg A/S has increased its earnings per share (EPS) by an average of 32% a year, over the last three years (using a line of best fit). It achieved revenue growth of 6.8% over the last year.
This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.
Has Carlsberg A/S Been A Good Investment?
Boasting a total shareholder return of 66% over three years, Carlsberg A/S 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...
We compared the total CEO remuneration paid by Carlsberg A/S, and compared it to remuneration at a group of other large companies. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. Even better, returns to shareholders have been plentiful, 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 Carlsberg shares with their own money (free access).
If you want to buy a stock that is better than Carlsberg, this free list of high return, low debt companies is a great place to look.
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.
