Lakshmi Mittal became the CEO of ArcelorMittal (AMS:MT) in 1976. First, this article will compare CEO compensation with compensation at other large companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Lakshmi Mittal's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that ArcelorMittal has a market cap of €20b, and is paying total annual CEO compensation of US$4.4m. (This is based on the year to December 2018). Notably, that's an increase of 14% over the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.6m. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$4.2m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
So Lakshmi Mittal receives a similar amount to the median CEO pay, amongst 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, below, how CEO compensation at ArcelorMittal has changed over time.
Is ArcelorMittal Growing?
ArcelorMittal has increased its earnings per share (EPS) by an average of 104% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 11%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has ArcelorMittal Been A Good Investment?
Most shareholders would probably be pleased with ArcelorMittal for providing a total return of 34% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for Lakshmi Mittal is close enough to the median pay for a CEO of a large company .
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at ArcelorMittal.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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