View photos
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
In 2014 Lynn Jurich was appointed CEO of Sunrun Inc. (NASDAQ:RUN). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Lynn Jurich’s Compensation Compare With Similar Sized Companies?
Our data indicates that Sunrun Inc. is worth US$1.6b, and total annual CEO compensation is US$5.6m. (This figure is for the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$500k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$3.5m.
Thus we can conclude that Lynn Jurich receives more in total compensation than the median of a group of companies in the same market, and of similar size to Sunrun 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 a visual representation of the CEO compensation at Sunrun, below.
Is Sunrun Inc. Growing?
On average over the last three years, Sunrun Inc. has grown earnings per share (EPS) by 94% each year (using a line of best fit). It achieved revenue growth of 34% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. You might want to check this free visual report on analyst forecasts for future earnings.
Has Sunrun Inc. Been A Good Investment?
Most shareholders would probably be pleased with Sunrun Inc. for providing a total return of 190% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
We compared the total CEO remuneration paid by Sunrun Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. So, considering this good performance, the CEO compensation may be quite appropriate. Shareholders may want to check for free if Sunrun insiders are buying or selling shares.
If you want to buy a stock that is better than Sunrun, this free list of high return, low debt companies is a great place to look.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
