Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
In 2008 Olivier 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. 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 process should give us an idea about how appropriately the CEO is paid.
How Does Olivier Filliol's Compensation Compare With Similar Sized Companies?
According to our data, Mettler-Toledo International Inc. has a market capitalization of US$19b, and pays its CEO total annual compensation worth US$7.1m. (This figure is for the year to December 2018). That's actually a decrease on the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$858k. 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).
A first glance this seems like a real positive for shareholders, since Olivier Filliol is paid less than the average total compensation paid by other large companies. 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?
Mettler-Toledo International Inc. has increased its earnings per share (EPS) by an average of 11% a year, over the last three years (using a line of best fit). Its revenue is up 7.7% over last year.
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?
I think that the total shareholder return of 108%, over three years, would leave most Mettler-Toledo International Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Mettler-Toledo International Inc. is currently paying its CEO below what is normal for large companies. Many would consider this to indicate that the pay is modest since the business is growing. The pleasing shareholder returns are the cherry on top; you might even consider that Olivier Filliol deserves a raise!
It is relatively rare to see a modestly paid CEO when performance is so impressive. The cherry on top would be if company insiders are buying shares with their own money. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Mettler-Toledo International (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.
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 email@example.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.