Dale Barnhart has been the CEO of Lydall, Inc. (NYSE:LDL) since 2007. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Dale Barnhart's Compensation Compare With Similar Sized Companies?
According to our data, Lydall, Inc. has a market capitalization of US$336m, and paid its CEO total annual compensation worth US$2.2m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$632k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.7m.
So Dale Barnhart is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at Lydall, below.
Is Lydall, Inc. Growing?
On average over the last three years, Lydall, Inc. has shrunk earnings per share by 25% each year (measured with a line of best fit). It achieved revenue growth of 13% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for me to put aside my concerns around earnings. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has Lydall, Inc. Been A Good Investment?
Given the total loss of 64% over three years, many shareholders in Lydall, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
Remuneration for Dale Barnhart is close enough to the median pay for a CEO of a similar sized company .
The company isn't growing EPS, and shareholder returns have been disappointing. Few would argue that it's wise for the company to pay any more, before returns improve. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Lydall (free visualization of insider trades).
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.
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