U.S. markets close in 3 hours 38 minutes
  • S&P 500

    3,379.16
    +16.16 (+0.48%)
     
  • Dow 30

    27,874.18
    +92.48 (+0.33%)
     
  • Nasdaq

    11,272.13
    +104.62 (+0.94%)
     
  • Russell 2000

    1,515.45
    +7.76 (+0.51%)
     
  • Crude Oil

    38.16
    -2.06 (-5.12%)
     
  • Gold

    1,914.20
    +18.70 (+0.99%)
     
  • Silver

    24.15
    +0.65 (+2.77%)
     
  • EUR/USD

    1.1747
    +0.0021 (+0.18%)
     
  • 10-Yr Bond

    0.6810
    +0.0040 (+0.59%)
     
  • GBP/USD

    1.2885
    -0.0035 (-0.27%)
     
  • USD/JPY

    105.5670
    +0.1370 (+0.13%)
     
  • BTC-USD

    10,632.58
    -163.45 (-1.51%)
     
  • CMC Crypto 200

    219.20
    -4.50 (-2.01%)
     
  • FTSE 100

    5,879.45
    +13.35 (+0.23%)
     
  • Nikkei 225

    23,185.12
    0.00 (0.00%)
     

How Much Is WestRock Company (NYSE:WRK) Paying Its CEO?

Simply Wall St

This article will reflect on the compensation paid to Steve Voorhees who has served as CEO of WestRock Company (NYSE:WRK) since 2015. This analysis will also assess whether WestRock pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for WestRock

Comparing WestRock Company's CEO Compensation With the industry

At the time of writing, our data shows that WestRock Company has a market capitalization of US$8.9b, and reported total annual CEO compensation of US$12m for the year to September 2019. We note that's a decrease of 35% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.2m.

For comparison, other companies in the same industry with market capitalizations ranging between US$4.0b and US$12b had a median total CEO compensation of US$9.4m. This suggests that WestRock remunerates its CEO largely in line with the industry average. What's more, Steve Voorhees holds US$40m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component

2019

2018

Proportion (2019)

Salary

US$1.2m

US$1.2m

11%

Other

US$10m

US$17m

89%

Total Compensation

US$12m

US$18m

100%

On an industry level, around 13% of total compensation represents salary and 87% is other remuneration. WestRock sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation
ceo-compensation

A Look at WestRock Company's Growth Numbers

Over the past three years, WestRock Company has seen its earnings per share (EPS) grow by 21% per year. In the last year, its revenue changed by just 0.7%.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has WestRock Company Been A Good Investment?

With a three year total loss of 33% for the shareholders, WestRock Company would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As we touched on above, WestRock Company is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. On the other hand, the company has logged negative shareholder returns over the previous three years. However, EPS growth is positive over the same time frame. Considering positive EPS growth, we'd say compensation is fair, but shareholders may be wary of a bump in pay before the company logs positive returns.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 2 warning signs for WestRock that investors should be aware of in a dynamic business environment.

Switching gears from WestRock, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.