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Is Minerals Technologies Inc. (NYSE:MTX) Overpaying Its CEO?

Simply Wall St

Doug Dietrich became the CEO of Minerals Technologies Inc. (NYSE:MTX) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 Minerals Technologies

How Does Doug Dietrich's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Minerals Technologies Inc. has a market cap of US$2.0b, and reported total annual CEO compensation of US$4.8m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$898k. 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$1.0b to US$3.2b. The median total CEO compensation was US$3.9m.

So Doug Dietrich is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at Minerals Technologies, below.

NYSE:MTX CEO Compensation, January 3rd 2020
NYSE:MTX CEO Compensation, January 3rd 2020

Is Minerals Technologies Inc. Growing?

On average over the last three years, Minerals Technologies Inc. has grown earnings per share (EPS) by 7.2% each year (using a line of best fit). Revenue was pretty flat on last year.

I'm not particularly impressed by the revenue growth, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise. It could be important to check this free visual depiction of what analysts expect for the future.

Has Minerals Technologies Inc. Been A Good Investment?

Since shareholders would have lost about 25% over three years, some Minerals Technologies Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Doug Dietrich is paid around what is normal the leaders of comparable size companies.

The company cannot boast particularly strong per share growth. And shareholder returns have been disappointing over the last three years. So suffice it to say we don't think the compensation is modest. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Minerals Technologies (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.

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.

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. Thank you for reading.