In This Article:
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Rob Vitale has been the CEO of Post Holdings, Inc. (NYSE:POST) since 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Post Holdings
How Does Rob Vitale's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Post Holdings, Inc. has a market cap of US$7.9b, and is paying total annual CEO compensation of US$9.9m. (This figure is for the year to September 2018). While we always look at total compensation first, we note that the salary component is less, at US$1.2m. We examined companies with market caps from US$4.0b to US$12b, and discovered that the median CEO total compensation of that group was US$6.9m.
Thus we can conclude that Rob Vitale receives more in total compensation than the median of a group of companies in the same market, and of similar size to Post Holdings, Inc.. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Post Holdings has changed over time.
Is Post Holdings, Inc. Growing?
Over the last three years Post Holdings, Inc. has grown its earnings per share (EPS) by an average of 93% per year (using a line of best fit). Its revenue is up 5.2% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. It could be important to check this free visual depiction of what analysts expect for the future.
Has Post Holdings, Inc. Been A Good Investment?
Post Holdings, Inc. has generated a total shareholder return of 23% 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.
In Summary...
We compared the total CEO remuneration paid by Post Holdings, Inc., and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.