Yahoo Finance Is Spire Inc.'s (NYSE:SR) CEO Salary Justified?
In 2012 Suzanne Sitherwood was appointed CEO of Spire Inc. (NYSE:SR). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Spire
How Does Suzanne Sitherwood's Compensation Compare With Similar Sized Companies?
Our data indicates that Spire Inc. is worth US$4.4b, and total annual CEO compensation was reported as US$4.0m for the year to September 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$871k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$5.1m.
So Suzanne Sitherwood is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Spire has changed from year to year.
Is Spire Inc. Growing?
On average over the last three years, Spire Inc. has grown earnings per share (EPS) by 9.5% each year (using a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.
I would prefer it if there was revenue growth, but it is good to see EPS growth. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. You might want to check this free visual report on analyst forecasts for future earnings.
Has Spire Inc. Been A Good Investment?
Most shareholders would probably be pleased with Spire Inc. for providing a total return of 51% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Suzanne Sitherwood is paid around the same as most CEOs of similar size companies.
While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So we can conclude that on this analysis the CEO compensation seems pretty sound. Whatever your view on compensation, you might want to check if insiders are buying or selling Spire shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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.
