How Is Sirius XM Holdings' (NASDAQ:SIRI) CEO Paid Relative To Peers?

Jim Meyer became the CEO of Sirius XM Holdings Inc. (NASDAQ:SIRI) in 2012, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Sirius XM Holdings.

View our latest analysis for Sirius XM Holdings

Comparing Sirius XM Holdings Inc.'s CEO Compensation With the industry

Our data indicates that Sirius XM Holdings Inc. has a market capitalization of US$25b, and total annual CEO compensation was reported as US$19m for the year to December 2019. That's just a smallish increase of 6.5% 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$14m. This suggests that Jim Meyer is paid more than the median for the industry. Furthermore, Jim Meyer directly owns US$20m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 20% of total compensation represents salary and 80% is other remuneration. Sirius XM Holdings sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Sirius XM Holdings Inc.'s Growth

Sirius XM Holdings Inc.'s earnings per share (EPS) grew 11% per year over the last three years. In the last year, its revenue is up 18%.

This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, 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 Sirius XM Holdings Inc. Been A Good Investment?

With a total shareholder return of 4.8% over three years, Sirius XM Holdings Inc. has done okay by shareholders. 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.

To Conclude...

As we touched on above, Sirius XM Holdings Inc. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, the EPS growth over three years is certainly impressive. We also note that, over the same time frame, shareholder returns haven't been bad. So, considering the EPS growth we do not wish to criticize CEO compensation, though we'd recommend further research on management.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Sirius XM Holdings that investors should think about before committing capital to this stock.

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.