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Is Century Aluminum Company (NASDAQ:CENX) Excessively Paying Its CEO?

Mike Bless has been the CEO of Century Aluminum Company (NASDAQ:CENX) since 2011. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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.

See our latest analysis for Century Aluminum

How Does Mike Bless’s Compensation Compare With Similar Sized Companies?

Our data indicates that Century Aluminum Company is worth US$752m, and total annual CEO compensation is US$4.4m. That’s less than last year. We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO compensation of that group was US$2.3m.

As you can see, Mike Bless is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Century Aluminum Company is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.

The graphic below shows how CEO compensation at Century Aluminum has changed from year to year.

NasdaqGS:CENX CEO Compensation November 22nd 18

Is Century Aluminum Company Growing?

On average over the last three years, Century Aluminum Company has grown earnings per share (EPS) by 32% each year. It achieved revenue growth of 23% over the last year.

This demonstrates that the company has been improving recently. A good result. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.

Shareholders might be interested in this free visualization of analyst forecasts. .

Has Century Aluminum Company Been A Good Investment?

I think that the total shareholder return of 122%, over three years, would leave most Century Aluminum Company shareholders smiling. 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…

We examined the amount Century Aluminum Company pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

However we must not forget that the EPS growth has been very strong over three years. Even better, returns to shareholders have been plentiful, over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate.

Or you might prefer this data-rich interactive visualization of historic revenue and earnings.

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.