Bob Patterson became the CEO of PolyOne Corporation (NYSE:POL) in 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 process should give us an idea about how appropriately the CEO is paid.
How Does Bob Patterson’s Compensation Compare With Similar Sized Companies?
According to our data, PolyOne Corporation has a market capitalization of US$2.6b, and pays its CEO total annual compensation worth US$5.7m. That’s a notable increase of 49% on last year. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$5.0m.
So Bob Patterson is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at PolyOne has changed from year to year.
Is PolyOne Corporation Growing?
On average over the last three years, PolyOne Corporation has grown earnings per share (EPS) by 14% each year. It achieved revenue growth of 12% over the last year.
This demonstrates that the company has been improving recently. A good result. IThis sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has PolyOne Corporation Been A Good Investment?
With a total shareholder return of 2.1% over three years, PolyOne Corporation has done okay by shareholders. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
Remuneration for Bob Patterson is close enough to the median pay for a CEO of a similar sized company .
The company is growing EPS but shareholder returns have been sound but not amazing. So considering these factors, we think the CEO pay is probably quite reasonable. Shareholders may want to check for free if PolyOne Corporation insiders are buying or selling shares.
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.