D. Wilson has been the CEO of Ingevity Corporation (NYSE:NGVT) since 2015. 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 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.
How Does D. Wilson's Compensation Compare With Similar Sized Companies?
Our data indicates that Ingevity Corporation is worth US$3.3b, and total annual CEO compensation is US$5.4m. (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$896k. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO total compensation of that group was US$5.1m.
So D. Wilson 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 Ingevity, below.
Is Ingevity Corporation Growing?
Over the last three years Ingevity Corporation has grown its earnings per share (EPS) by an average of 49% per year (using a line of best fit). Its revenue is up 18% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Ingevity Corporation Been A Good Investment?
Most shareholders would probably be pleased with Ingevity Corporation for providing a total return of 82% 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.
D. Wilson is paid around what is normal the leaders of comparable size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! Shareholders may want to check for free if Ingevity insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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