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Does Quaker Chemical Corporation's (NYSE:KWR) CEO Pay Reflect Performance?

Simply Wall St

Mike Barry has been the CEO of Quaker Chemical Corporation (NYSE:KWR) since 2008. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

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View our latest analysis for Quaker Chemical

How Does Mike Barry's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Quaker Chemical Corporation has a market cap of US$2.6b, and is paying total annual CEO compensation of US$4.8m. (This number is for the twelve months until December 2018). That's less than last year. We think total compensation is more important but we note that the CEO salary is lower, at US$845k. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO total compensation was US$5.3m.

That means Mike Barry receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Quaker Chemical has changed over time.

NYSE:KWR CEO Compensation, May 21st 2019

Is Quaker Chemical Corporation Growing?

On average over the last three years, Quaker Chemical Corporation has shrunk earnings per share by 7.5% each year (measured with a line of best fit). In the last year, its revenue is up 3.5%.

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. It could be important to check this free visual depiction of what analysts expect for the future.

Has Quaker Chemical Corporation Been A Good Investment?

I think that the total shareholder return of 143%, over three years, would leave most Quaker Chemical Corporation shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Remuneration for Mike Barry is close enough to the median pay for a CEO of a similar sized company .

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 think most shareholders wouldn't be too worried about CEO compensation, which is close to the median for similar sized companies. So you may want to check if insiders are buying Quaker Chemical shares with their own money (free access).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.