Bob Pagano has been the CEO of Watts Water Technologies, Inc. (NYSE:WTS) since 2014. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
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How Does Bob Pagano's Compensation Compare With Similar Sized Companies?
Our data indicates that Watts Water Technologies, Inc. is worth US$2.8b, and total annual CEO compensation is US$5.9m. (This figure is for the year to December 2018). That's a notable increase of 22% on last year. We think total compensation is more important but we note that the CEO salary is lower, at US$885k. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO total compensation was US$5.3m.
So Bob Pagano is paid around the average of 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 Watts Water Technologies, below.
Is Watts Water Technologies, Inc. Growing?
Watts Water Technologies, Inc. has increased its earnings per share (EPS) by an average of 74% a year, over the last three years (using a line of best fit). It achieved revenue growth of 5.9% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.
Has Watts Water Technologies, Inc. Been A Good Investment?
I think that the total shareholder return of 51%, over three years, would leave most Watts Water Technologies, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Bob Pagano is paid around the same as most CEOs of similar size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! Shareholders may want to check for free if Watts Water Technologies insiders are buying or selling shares.
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.
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