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Mitch Butier became the CEO of Avery Dennison Corporation (NYSE:AVY) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Mitch Butier's Compensation Compare With Similar Sized Companies?
According to our data, Avery Dennison Corporation has a market capitalization of US$8.7b, and pays its CEO total annual compensation worth US$8.7m. (This figure is for the year to December 2018). That's less than last year. We think total compensation is more important but we note that the CEO salary is lower, at US$1.1m. We looked at a group of companies with market capitalizations from US$4.0b to US$12b, and the median CEO total compensation was US$7.0m.
That means Mitch Butier receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Avery Dennison has changed over time.
Is Avery Dennison Corporation Growing?
Avery Dennison Corporation saw earnings per share stay pretty flat over the last three years, albeit with a slight positive trend. Its revenue is up 4.5% over last year.
I'm not particularly impressed by the revenue growth, but it is good to see modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. You might want to check this free visual report on analyst forecasts for future earnings.
Has Avery Dennison Corporation Been A Good Investment?
Most shareholders would probably be pleased with Avery Dennison Corporation for providing a total return of 45% over three years. 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.
Mitch Butier is paid around what is normal the leaders of comparable size companies.
The company isn't showing particularly great growth, but shareholder returns have been pleasing. So considering most shareholders would be happy, we'd say the CEO pay is appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Avery Dennison.
If you want to buy a stock that is better than Avery Dennison, this free list of high return, low debt companies is a great place to look.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.