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How Much is Umicore SA's (EBR:UMI) CEO Getting Paid?

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In 2008 Marc Grynberg was appointed CEO of Umicore SA (EBR:UMI). 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Umicore

How Does Marc Grynberg's Compensation Compare With Similar Sized Companies?

According to our data, Umicore SA has a market capitalization of €7.6b, and paid its CEO total annual compensation worth €2.7m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at €700k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations from €3.6b to €11b, and the median CEO total compensation was €2.3m.

That means Marc Grynberg receives fairly typical remuneration for the CEO of a company that size. 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 Umicore, below.

ENXTBR:UMI CEO Compensation, March 16th 2020
ENXTBR:UMI CEO Compensation, March 16th 2020

Is Umicore SA Growing?

On average over the last three years, Umicore SA has grown earnings per share (EPS) by 15% each year (using a line of best fit). In the last year, its revenue is up 27%.

This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Shareholders might be interested in this free visualization of analyst forecasts.

Has Umicore SA Been A Good Investment?

Umicore SA has generated a total shareholder return of 27% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Marc Grynberg is paid around what is normal for the leaders of comparable size companies.

We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. As a result of these considerations, I would suggest the CEO pay is reasonable. Shifting gears from CEO pay for a second, we've picked out 2 warning signs for Umicore that investors should be aware of in a dynamic business environment.

If you want to buy a stock that is better than Umicore, this free list of high return, low debt companies is a great place to look.

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.