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Is Matson, Inc. (NYSE:MATX) Overpaying Its CEO?

Simply Wall St

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Matt Cox became the CEO of Matson, Inc. (NYSE:MATX) in 2012. 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Matson

How Does Matt Cox's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Matson, Inc. has a market cap of US$1.6b, and is paying total annual CEO compensation of US$4.6m. (This number is for the twelve months until December 2018). That's just a smallish increase of 2.7% on last year. We think total compensation is more important but we note that the CEO salary is lower, at US$789k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$4.1m.

So Matt Cox receives a similar amount to the median CEO pay, amongst the companies we looked at. 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 Matson, below.

NYSE:MATX CEO Compensation, June 20th 2019

Is Matson, Inc. Growing?

On average over the last three years, Matson, Inc. has grown earnings per share (EPS) by 28% each year (using a line of best fit). It achieved revenue growth of 7.7% over the last year.

This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.

Has Matson, Inc. Been A Good Investment?

With a total shareholder return of 21% over three years, Matson, Inc. shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Remuneration for Matt Cox is close enough to the median pay for a CEO of a similar sized company .

We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. So upon reflection one could argue that the CEO pay is quite reasonable. So you may want to check if insiders are buying Matson shares with their own money (free access).

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.