In 2017 Stephan Tanda was appointed CEO of AptarGroup, Inc. (NYSE:ATR). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Stephan Tanda's Compensation Compare With Similar Sized Companies?
According to our data, AptarGroup, Inc. has a market capitalization of US$7.8b, and pays its CEO total annual compensation worth US$8.0m. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.0m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$4.0b to US$12b. The median total CEO compensation was US$6.8m.
So Stephan Tanda is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at AptarGroup has changed from year to year.
Is AptarGroup, Inc. Growing?
Earnings per share at AptarGroup, Inc. are much the same as they were three years ago, albeit with a positive trend. Its revenue is up 6.5% over last year.
I'd prefer higher revenue growth, but I'm happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise. It could be important to check this free visual depiction of what analysts expect for the future.
Has AptarGroup, Inc. Been A Good Investment?
Boasting a total shareholder return of 67% over three years, AptarGroup, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Stephan Tanda is paid around the same as most CEOs of similar size companies.
The company isn't showing particularly great growth, but shareholder returns have been pleasing. So we can conclude that on this analysis the CEO compensation seems pretty sound. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling AptarGroup (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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