How Does Berry Global Group's (NYSE:BERY) CEO Pay Compare With Company Performance?

This article will reflect on the compensation paid to Tom Salmon who has served as CEO of Berry Global Group, Inc. (NYSE:BERY) since 2017. This analysis will also assess whether Berry Global Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Berry Global Group

How Does Total Compensation For Tom Salmon Compare With Other Companies In The Industry?

Our data indicates that Berry Global Group, Inc. has a market capitalization of US$6.9b, and total annual CEO compensation was reported as US$5.6m for the year to September 2019. That's a notable increase of 17% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.0m.

For comparison, other companies in the same industry with market capitalizations ranging between US$4.0b and US$12b had a median total CEO compensation of US$9.4m. Accordingly, Berry Global Group pays its CEO under the industry median. Furthermore, Tom Salmon directly owns US$2.4m worth of shares in the company.

Speaking on an industry level, nearly 13% of total compensation represents salary, while the remainder of 87% is other remuneration. Berry Global Group is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Berry Global Group, Inc.'s Growth

Over the past three years, Berry Global Group, Inc. has seen its earnings per share (EPS) grow by 22% per year. Its revenue is up 48% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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 Berry Global Group, Inc. Been A Good Investment?

Since shareholders would have lost about 8.5% over three years, some Berry Global Group, Inc. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

As we noted earlier, Berry Global Group pays its CEO lower than the norm for similar-sized companies belonging to the same industry. However, the earnings per share growth over three years is certainly impressive. It's tough to criticize CEO compensation when the per-share earnings movement is positive. But we believe shareholders would want to see healthier returns before the CEO gets a raise.

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. In our study, we found 2 warning signs for Berry Global Group you should be aware of, and 1 of them is a bit concerning.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.