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Is Catalent Inc’s (NYSE:CTLT) CEO Incentives Align With Yours?

In 2009 John Chiminski was appointed CEO of Catalent Inc (NYSE:CTLT). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. 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.

See our latest analysis for Catalent

How Does John Chiminski’s Compensation Compare With Similar Sized Companies?

Our data indicates that Catalent Inc is worth US$6.1b, and total annual CEO compensation is US$9m. We note that’s an increase of 35% above last year. We looked at a group of companies with market capitalizations from US$4.0b to US$12.0b, and the median CEO compensation was US$7m.

So John Chiminski receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see, below, how CEO compensation at Catalent has changed over time.

NYSE:CTLT CEO Compensation November 6th 18

Is Catalent Inc Growing?

Catalent Inc has reduced its earnings per share by an average of 44% a year, over the last three years. In the last year, its revenue is up 19%.

Few shareholders would be pleased to read that earnings per share are lower over three years. There’s no doubt that the silver lining is that revenue is up. But it isn’t sufficiently fast growth wto overlook the fact that earnings per share has gone backwards over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.

You might want to check this free visual report on analyst forecasts for future earnings.

Has Catalent Inc Been A Good Investment?

Boasting a total shareholder return of 51% over three years, Catalent Inc has done well by shareholders. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.

In Summary…

John Chiminski is paid around the same as most CEOs of similar size companies.

We’re not seeing great strides in earnings per share, but the company has clearly pleased some investors, given the returns over the last three years. So we think most shareholders wouldn’t be too worried about CEO compensation, which is close to the median for similar sized companies. Shareholders may want to check for free if Catalent Inc insiders are buying or selling shares.

Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.

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.