Yahoo Finance Carlisle Companies Incorporated's (NYSE:CSL) CEO Looks Like They Deserve Their Pay Packet
Key Insights
Carlisle Companies' Annual General Meeting to take place on 1st of May
CEO Chris Koch's total compensation includes salary of US$1.40m
The total compensation is similar to the average for the industry
Carlisle Companies' total shareholder return over the past three years was 102% while its EPS grew by 36% over the past three years
It would be hard to discount the role that CEO Chris Koch has played in delivering the impressive results at Carlisle Companies Incorporated (NYSE:CSL) recently. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 1st of May. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is not extravagant.
Check out our latest analysis for Carlisle Companies
How Does Total Compensation For Chris Koch Compare With Other Companies In The Industry?
At the time of writing, our data shows that Carlisle Companies Incorporated has a market capitalization of US$18b, and reported total annual CEO compensation of US$11m for the year to December 2023. That's slightly lower by 4.2% over the previous year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.4m.
In comparison with other companies in the American Building industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$10m. From this we gather that Chris Koch is paid around the median for CEOs in the industry. What's more, Chris Koch holds US$83m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$1.4m | US$1.3m | 13% |
Other | US$9.6m | US$10m | 87% |
Total Compensation | US$11m | US$12m | 100% |
Speaking on an industry level, nearly 16% of total compensation represents salary, while the remainder of 84% is other remuneration. Carlisle Companies sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Carlisle Companies Incorporated's Growth Numbers
Over the past three years, Carlisle Companies Incorporated has seen its earnings per share (EPS) grow by 36% per year. In the last year, its revenue is down 16%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Carlisle Companies Incorporated Been A Good Investment?
Most shareholders would probably be pleased with Carlisle Companies Incorporated for providing a total return of 102% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Carlisle Companies that you should be aware of before investing.
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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
