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Scott McPherson has been the CEO of Core-Mark Holding Company, Inc. (NASDAQ:CORE) since 2018, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Core-Mark Holding Company pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Comparing Core-Mark Holding Company, Inc.'s CEO Compensation With the industry
Our data indicates that Core-Mark Holding Company, Inc. has a market capitalization of US$1.4b, and total annual CEO compensation was reported as US$2.1m for the year to December 2019. That's a notable decrease of 13% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$500k.
On comparing similar companies from the same industry with market caps ranging from US$1.0b to US$3.2b, we found that the median CEO total compensation was US$299k. Accordingly, our analysis reveals that Core-Mark Holding Company, Inc. pays Scott McPherson north of the industry median. Furthermore, Scott McPherson directly owns US$6.3m worth of shares in the company, implying that they are deeply invested in the company's success.
On an industry level, roughly 43% of total compensation represents salary and 57% is other remuneration. In Core-Mark Holding Company's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Core-Mark Holding Company, Inc.'s Growth Numbers
Core-Mark Holding Company, Inc.'s earnings per share (EPS) grew 14% per year over the last three years. Its revenue is up 2.3% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Core-Mark Holding Company, Inc. Been A Good Investment?
Core-Mark Holding Company, Inc. has not done too badly by shareholders, with a total return of 3.1%, over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
As we noted earlier, Core-Mark Holding Company pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, we must not forget that the EPS growth has been very strong over three years. We also note that, over the same time frame, shareholder returns haven't been bad. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't say CEO compensation problematic.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Core-Mark Holding Company that you should be aware of before investing.
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.
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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