Suzanne Sitherwood became the CEO of Spire Inc. (NYSE:SR) in 2012. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Suzanne Sitherwood's Compensation Compare With Similar Sized Companies?
Our data indicates that Spire Inc. is worth US$3.8b, and total annual CEO compensation was reported as US$4.5m for the year to September 2019. We think total compensation is more important but we note that the CEO salary is lower, at US$900k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. 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$5.5m.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. Speaking on an industry level, we can see that nearly 19% of total compensation represents salary, while the remainder of 81% is other remuneration. So it seems like there isn't a significant difference between Spire and the broader market, in terms of salary allocation in the overall compensation package.
That means Suzanne Sitherwood receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance. The graphic below shows how CEO compensation at Spire has changed from year to year.
Is Spire Inc. Growing?
Over the last three years Spire Inc. has seen earnings per share (EPS) move in a positive direction by an average of 2.0% per year (using a line of best fit). It saw its revenue drop 4.4% over the last year.
I would prefer it if there was revenue growth, but the improvement in EPS is good. It's hard to reach a conclusion about business performance right now. This may be one to watch. It could be important to check this free visual depiction of what analysts expect for the future.
Has Spire Inc. Been A Good Investment?
Spire Inc. has generated a total shareholder return of 20% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
Suzanne Sitherwood is paid around the same as most CEOs of similar size companies.
The company isn't showing particularly great growth, and shareholder turns haven't been particularly inspiring in the last few years. While there is room for improvement, we haven't seen evidence to suggest the pay is too generous. On another note, Spire has 2 warning signs (and 1 which is significant) we think you should know about.
Important note: Spire may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
If you spot an error that warrants correction, please contact the editor at email@example.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.
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