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In 2016 Doug Dietrich was appointed CEO of Minerals Technologies Inc. (NYSE:MTX). 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Doug Dietrich's Compensation Compare With Similar Sized Companies?
According to our data, Minerals Technologies Inc. has a market capitalization of US$1.9b, and pays its CEO total annual compensation worth US$4.8m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$898k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$4.0m.
So Doug Dietrich is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Minerals Technologies has changed over time.
Is Minerals Technologies Inc. Growing?
Over the last three years Minerals Technologies Inc. has grown its earnings per share (EPS) by an average of 20% per year (using a line of best fit). It achieved revenue growth of 6.6% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Shareholders might be interested in this free visualization of analyst forecasts.
Has Minerals Technologies Inc. Been A Good Investment?
With a three year total loss of 11%, Minerals Technologies Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
Doug Dietrich is paid around the same as most CEOs of similar size companies.
We think that the EPS growth is very pleasing, but we cannot say the same about the lacklustre shareholder returns (over the last three years). Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Minerals Technologies (free visualization of insider trades).
If you want to buy a stock that is better than Minerals Technologies, this free list of high return, low debt companies is a great place to look.
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 firstname.lastname@example.org. 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.