Does P H Glatfelter Company’s (NYSE:GLT) CEO Pay Matter?
In 2011 Dante Parrini was appointed CEO of P H Glatfelter Company (NYSE:GLT). First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for P. H. Glatfelter
How Does Dante Parrini’s Compensation Compare With Similar Sized Companies?
Our data indicates that P H Glatfelter Company is worth US$809m, and total annual CEO compensation is US$5m. 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$2m.
It would therefore appear that P H Glatfelter Company pays Dante Parrini more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. 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 P. H. Glatfelter has changed from year to year.
Is P H Glatfelter Company Growing?
Over the last three years P H Glatfelter Company has shrunk its earnings per share by an average of 79% per year. Its revenue is up 3.5% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. The modest increase in revenue in the last year isn’t enough to make me overlook the disappointing change in earnings per share. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has P H Glatfelter Company Been A Good Investment?
P H Glatfelter Company has served shareholders reasonably well, with a total return of 12% over three years. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary…
We examined the amount P H Glatfelter 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.
Earnings per share have not grown in three years, and the revenue growth fails to impress us.
And shareholder returns are decent but not great. So we think more research is needed, but we don’t think the CEO underpaid. Whatever your view on compensation, you might want to check if insiders are buying or selling P H Glatfelter Company shares (free trial).
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.
