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Does P. H. Glatfelter Company's (NYSE:GLT) CEO Pay Reflect Performance?

Simply Wall St

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. 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 process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for P. H. Glatfelter

How Does Dante Parrini's Compensation Compare With Similar Sized Companies?

According to our data, P. H. Glatfelter Company has a market capitalization of US$811m, and paid its CEO total annual compensation worth US$2.8m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$996k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO total compensation of that group was US$2.6m.

So Dante Parrini receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at P. H. Glatfelter, below.

NYSE:GLT CEO Compensation, November 12th 2019

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 51% per year (measured with a line of best fit). In the last year, its revenue is up 9.5%.

Unfortunately, earnings per share have trended lower over the last three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.

Has P. H. Glatfelter Company Been A Good Investment?

Since shareholders would have lost about 10% over three years, some P. H. Glatfelter Company shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Dante Parrini is paid around the same as most CEOs of similar size companies.

After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Suffice it to say, we don't think the CEO is underpaid! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at P. H. Glatfelter.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.