Mike Hilton became the CEO of Nordson Corporation (NASDAQ:NDSN) in 2010. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Mike Hilton’s Compensation Compare With Similar Sized Companies?
Our data indicates that Nordson Corporation is worth US$7.4b, and total annual CEO compensation is US$7m. That’s a modest increase of 5.0% on the prior year 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 Mike Hilton is paid around the average of 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 a visual representation of the CEO compensation at Nordson, below.
Is Nordson Corporation Growing?
Over the last three years Nordson Corporation has grown its earnings per share (EPS) by an average of 21% per year. It achieved revenue growth of 13% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Nordson Corporation Been A Good Investment?
Boasting a total shareholder return of 81% over three years, Nordson Corporation 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.
Remuneration for Mike Hilton is close enough to the median pay for a CEO of a similar sized company .
The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Nordson Corporation (free visualization of insider trades).
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 email@example.com.