Does Charter Communications' (NASDAQ:CHTR) CEO Salary Compare Well With The Performance Of The Company?

NASDAQ:CHTR) since 2012. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.” data-reactid=”28″>This article will reflect on the compensation paid to Tom Rutledge who has served as CEO of Charter Communications, Inc. (NASDAQ:CHTR) since 2012. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

See our latest analysis for Charter Communications ” data-reactid=”29″>See our latest analysis for Charter Communications

Comparing Charter Communications, Inc.’s CEO Compensation With the industry

According to our data, Charter Communications, Inc. has a market capitalization of US$135b, and paid its CEO total annual compensation worth US$8.7m over the year to December 2019. That’s just a smallish increase of 7.2% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$2.0m.

For comparison, other companies in the industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$13m. This suggests that Tom Rutledge is paid below the industry median. Moreover, Tom Rutledge also holds US$153m worth of Charter Communications stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 20% of total compensation represents salary and 80% is other remuneration. It’s interesting to note that Charter Communications pays out a greater portion of remuneration through salary, compared to the industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Charter Communications, Inc.’s Growth

Charter Communications, Inc. has seen its earnings per share (EPS) increase by 45% a year over the past three years. Its revenue is up 4.4% over the last year.

this free visualization of analyst forecasts.” data-reactid=”54″>Shareholders would be glad to know that the company has improved itself over the last few years. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Charter Communications, Inc. Been A Good Investment?

Boasting a total shareholder return of 51% over three years, Charter Communications, Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude…

As we noted earlier, Charter Communications pays its CEO lower than the norm for similar-sized companies belonging to the same industry. Considering robust earnings growth, we believe Tom to be modestly paid. And given most shareholders are probably very happy with recent shareholder returns, they might even think Tom deserves a raise!

2 warning signs (and 1 which makes us a bit uncomfortable) in Charter Communications we think you should know about.” data-reactid=”59″>CEO compensation is an important area to keep your eyes on, but we’ve also need to pay attention to other attributes of the company. We did our research and identified 2 warning signs (and 1 which makes us a bit uncomfortable) in Charter Communications we think you should know about.

this list of interesting companies with high ROE and low debt. ” data-reactid=”60″>Important note: Charter Communications is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.