NYSE:BMY) since 2015. 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 Giovanni Caforio who has served as CEO of Bristol-Myers Squibb Company (NYSE:BMY) since 2015. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
Check out our latest analysis for Bristol-Myers Squibb ” data-reactid=”29″> Check out our latest analysis for Bristol-Myers Squibb
Comparing Bristol-Myers Squibb Company’s CEO Compensation With the industry
At the time of writing, our data shows that Bristol-Myers Squibb Company has a market capitalization of US$135b, and reported total annual CEO compensation of US$19m for the year to December 2019. We note that’s a small decrease of 3.2% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.7m.
On comparing similar companies in the industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$18m. From this we gather that Giovanni Caforio is paid around the median for CEOs in the industry. What’s more, Giovanni Caforio holds US$27m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | US$1.7m | US$1.6m | 9% |
| Other | US$17m | US$18m | 91% |
| Total Compensation | US$19m | US$19m | 100% |
Speaking on an industry level, nearly 24% of total compensation represents salary, while the remainder of 76% is other remuneration. It’s interesting to note that Bristol-Myers Squibb allocates a smaller portion of compensation to salary in comparison to the broader 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 Bristol-Myers Squibb Company’s Growth Numbers
Bristol-Myers Squibb Company has reduced its earnings per share by 5.7% a year over the last three years. It achieved revenue growth of 46% over the last year.
this free visual report on analyst forecasts for the company’s future earnings..” data-reactid=”54″>The reduction in EPS, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company’s future earnings..
Has Bristol-Myers Squibb Company Been A Good Investment?
Bristol-Myers Squibb Company has not done too badly by shareholders, with a total return of 4.5%, over three years. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary…
As we noted earlier, Bristol-Myers Squibb pays its CEO in line with similar-sized companies belonging to the same industry. But revenue growth over the last year can’t be ignored. Shareholder returns, in comparison, have not been as impressive during the same period. An additional worry is EPS , which has posted negative growth in the previous three years. There’s certainly room for improvement, but CEO compensation seems reasonable, considering the company’s steady performance.
4 warning signs (and 1 which is significant) in Bristol-Myers Squibb we think you should know about.” data-reactid=”59″>CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 4 warning signs (and 1 which is significant) in Bristol-Myers Squibb we think you should know about.
list of interesting companies that have HIGH return on equity and low debt.” data-reactid=”60″>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.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”65″>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. 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.
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