How Much Did Veritiv Corporation's (NYSE:VRTV) CEO Pocket Last Year?
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In 2014 Mary Laschinger was appointed CEO of Veritiv Corporation (NYSE:VRTV). First, this article will compare CEO compensation with compensation at similar sized companies. 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.
View our latest analysis for Veritiv
How Does Mary Laschinger's Compensation Compare With Similar Sized Companies?
According to our data, Veritiv Corporation has a market capitalization of US$295m, and pays its CEO total annual compensation worth US$6.8m. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at US$1.0m. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$1.1m.
Thus we can conclude that Mary Laschinger receives more in total compensation than the median of a group of companies in the same market, and of similar size to Veritiv Corporation. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Veritiv has changed from year to year.
Is Veritiv Corporation Growing?
Over the last three years Veritiv Corporation has shrunk its earnings per share by an average of 104% per year (measured with a line of best fit). Revenue was pretty flat on last year.
Unfortunately, earnings per share have trended lower over the last three years. And the flat revenue is seriously uninspiring. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Veritiv Corporation Been A Good Investment?
With a three year total loss of 54%, Veritiv Corporation would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared total CEO remuneration at Veritiv Corporation with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
Earnings per share have not grown in three years, and the revenue growth fails to impress us.
Over the same period, investors would have come away with nothing in the way of share price gains. This analysis suggests to us that the CEO is paid too generously! Shareholders may want to check for free if Veritiv insiders are buying or selling shares.
Important note: Veritiv 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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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.
