In 2015 Adam Chase was appointed CEO of Chase Corporation (NYSEMKT:CCF). 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. This method should give us information to assess how appropriately the company pays the CEO.
How Does Adam Chase’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Chase Corporation has a market cap of US$898m, and is paying total annual CEO compensation of US$1.6m. (This number is for the twelve months until August 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$500k. When we examined a selection of companies with market caps ranging from US$400m to US$1.6b, we found the median CEO compensation was US$2.2m.
That means Adam Chase receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Chase, below.
Is Chase Corporation Growing?
On average over the last three years, Chase Corporation has grown earnings per share (EPS) by 15% each year (using a line of best fit). In the last year, its revenue is up 16%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. We don’t have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Chase Corporation Been A Good Investment?
I think that the total shareholder return of 115%, over three years, would leave most Chase Corporation shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Adam Chase is paid around the same as most CEOs of similar 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! So you may want to check if insiders are buying Chase shares with their own money (free access).
Important note: Chase may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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