Matt Trerotola became the CEO of Colfax Corporation (NYSE:CFX) in 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Matt Trerotola's Compensation Compare With Similar Sized Companies?
Our data indicates that Colfax Corporation is worth US$4.3b, and total annual CEO compensation was reported as US$3.1m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$1.0m. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. 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$5.1m.
Most shareholders would consider it a positive that Matt Trerotola takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Colfax has changed over time.
Is Colfax Corporation Growing?
Over the last three years Colfax Corporation has shrunk its earnings per share by an average of 25% per year (measured with a line of best fit). In the last year, its revenue is up 80%.
Investors should note that, over three years, earnings per share are down. On the other hand, the strong revenue growth suggests the business is growing. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. You might want to check this free visual report on analyst forecasts for future earnings.
Has Colfax Corporation Been A Good Investment?
With a three year total loss of 1.8%, Colfax Corporation would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
Colfax Corporation is currently paying its CEO below what is normal for companies of its size.
Matt Trerotola is paid less than CEOs of similar size companies, but growth hasn't been particularly impressive and the total shareholder return over three years would leave many disappointed. I am not concerned by the CEO compensation, but it would be good to see improved performance before pay increases. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Colfax.
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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