In 2008 Olivier A. Filliol was appointed CEO of Mettler-Toledo International Inc. (NYSE:MTD). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Olivier A. Filliol's Compensation Compare With Similar Sized Companies?
According to our data, Mettler-Toledo International Inc. has a market capitalization of US$18b, and paid its CEO total annual compensation worth US$7.1m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$858k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
This would give shareholders a good impression of the company, since most large companies pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at Mettler-Toledo International has changed from year to year.
Is Mettler-Toledo International Inc. Growing?
Over the last three years Mettler-Toledo International Inc. has grown its earnings per share (EPS) by an average of 15% per year (using a line of best fit). In the last year, its revenue is up 3.6%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to check this free visual report on analyst forecasts for future earnings.
Has Mettler-Toledo International Inc. Been A Good Investment?
Most shareholders would probably be pleased with Mettler-Toledo International Inc. for providing a total return of 70% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Mettler-Toledo International Inc. is currently paying its CEO below what is normal for large companies.
Since the business is growing, many would argue this suggests the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Olivier A. Filliol deserves a raise! Most shareholders like to see a modestly paid CEO combined with strong performance by the company. But it is even better if company insiders are also buying shares with their own money. So you may want to check if insiders are buying Mettler-Toledo International shares with their own money (free access).
Important note: Mettler-Toledo International 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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