Bill Wulfsohn became the CEO of Ashland Global Holdings Inc. (NYSE:ASH) in 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. 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.
How Does Bill Wulfsohn's Compensation Compare With Similar Sized Companies?
According to our data, Ashland Global Holdings Inc. has a market capitalization of US$5.0b, and pays its CEO total annual compensation worth US$9.1m. (This number is for the twelve months until September 2018). While we always look at total compensation first, we note that the salary component is less, at US$1.2m. When we examined a selection of companies with market caps ranging from US$4.0b to US$12b, we found the median CEO total compensation was US$6.4m.
It would therefore appear that Ashland Global Holdings Inc. pays Bill Wulfsohn more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Ashland Global Holdings, below.
Is Ashland Global Holdings Inc. Growing?
On average over the last three years, Ashland Global Holdings Inc. has grown earnings per share (EPS) by 11% each year (using a line of best fit). It achieved revenue growth of 19% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. 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 Ashland Global Holdings Inc. Been A Good Investment?
Most shareholders would probably be pleased with Ashland Global Holdings Inc. for providing a total return of 50% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
We compared total CEO remuneration at Ashland Global Holdings Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. So you may want to check if insiders are buying Ashland Global Holdings shares with their own money (free access).
If you want to buy a stock that is better than Ashland Global Holdings, this free list of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.