How Much Did OMNOVA Solutions Inc.'s (NYSE:OMN) CEO Pocket Last Year?
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Anne Noonan became the CEO of OMNOVA Solutions Inc. (NYSE:OMN) in 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for OMNOVA Solutions
How Does Anne Noonan's Compensation Compare With Similar Sized Companies?
According to our data, OMNOVA Solutions Inc. has a market capitalization of US$253m, and pays its CEO total annual compensation worth US$2.3m. (This is based on the year to November 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$699k. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO total compensation was US$1.1m.
As you can see, Anne Noonan is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean OMNOVA Solutions Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at OMNOVA Solutions has changed over time.
Is OMNOVA Solutions Inc. Growing?
On average over the last three years, OMNOVA Solutions Inc. has shrunk earnings per share by 30% each year (measured with a line of best fit). Its revenue is down -3.5% over last year.
Unfortunately, earnings per share have trended lower over the last three years. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has OMNOVA Solutions Inc. Been A Good Investment?
Given the total loss of 15% over three years, many shareholders in OMNOVA Solutions Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We examined the amount OMNOVA Solutions Inc. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
We think many shareholders would be underwhelmed with the business growth over the last three years.
Over the same period, investors would have come away with nothing in the way of share price gains. Some might well form the view that the CEO is paid too generously! Whatever your view on compensation, you might want to check if insiders are buying or selling OMNOVA Solutions shares (free trial).
Important note: OMNOVA Solutions 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.
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.
