Increases to Schweitzer-Mauduit International, Inc.'s (NYSE:SWM) CEO Compensation Might Cool off for now
Under the guidance of CEO Jeff Kramer, Schweitzer-Mauduit International, Inc. (NYSE:SWM) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 22 April 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
See our latest analysis for Schweitzer-Mauduit International
Comparing Schweitzer-Mauduit International, Inc.'s CEO Compensation With the industry
Our data indicates that Schweitzer-Mauduit International, Inc. has a market capitalization of US$1.5b, and total annual CEO compensation was reported as US$5.8m for the year to December 2020. We note that's a decrease of 14% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$800k.
On examining similar-sized companies in the industry with market capitalizations between US$1.0b and US$3.2b, we discovered that the median CEO total compensation of that group was US$2.2m. Accordingly, our analysis reveals that Schweitzer-Mauduit International, Inc. pays Jeff Kramer north of the industry median. Moreover, Jeff Kramer also holds US$11m worth of Schweitzer-Mauduit International stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2020 | 2019 | Proportion (2020) |
Salary | US$800k | US$749k | 14% |
Other | US$5.0m | US$5.9m | 86% |
Total Compensation | US$5.8m | US$6.7m | 100% |
On an industry level, roughly 20% of total compensation represents salary and 80% is other remuneration. Schweitzer-Mauduit International pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Schweitzer-Mauduit International, Inc.'s Growth
Schweitzer-Mauduit International, Inc. has seen its earnings per share (EPS) increase by 34% a year over the past three years. It achieved revenue growth of 5.0% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Schweitzer-Mauduit International, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Schweitzer-Mauduit International, Inc. for providing a total return of 36% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Schweitzer-Mauduit International that investors should think about before committing capital to this stock.
Switching gears from Schweitzer-Mauduit International, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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