Mike Barry became the CEO of Quaker Chemical Corporation (NYSE:KWR) in 2008. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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 Barry’s Compensation Compare With Similar Sized Companies?
According to our data, Quaker Chemical Corporation has a market capitalization of US$2.7b, and pays its CEO total annual compensation worth US$4.9m. (This number is for the twelve months until 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$820k. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO compensation of that group was US$4.9m.
So Mike Barry 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 Quaker Chemical, below.
Is Quaker Chemical Corporation Growing?
On average over the last three years, Quaker Chemical Corporation has shrunk earnings per share by 18% each year. It achieved revenue growth of 8.4% over the last year.
Unfortunately, earnings per share have trended lower over the last 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.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Quaker Chemical Corporation Been A Good Investment?
Boasting a total shareholder return of 144% over three years, Quaker Chemical 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.
Mike Barry is paid around the same as most CEOs of similar size companies.
We feel that earnings per share have been a bit disappointing, but it’s nice to see positive shareholder returns over the last three years. So we can’t see a reason to suggest the pay is inappropriate. Whatever your view on compensation, you might want to check if insiders are buying or selling Quaker Chemical 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 firstname.lastname@example.org.