Here’s What We Think About Graphic Packaging Holding Company’s (NYSE:GPK) CEO Pay
Mike Doss became the CEO of Graphic Packaging Holding Company (NYSE:GPK) in 2016. First, this article will compare CEO compensation with compensation at similar sized companies. 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.
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How Does Mike Doss’s Compensation Compare With Similar Sized Companies?
According to our data, Graphic Packaging Holding Company has a market capitalization of US$3.8b, and pays its CEO total annual compensation worth US$6.0m. (This number is for the twelve months until 2017). While we always look at total compensation first, we note that the salary component is less, at US$927k. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO compensation was US$4.9m.
So Mike Doss receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Graphic Packaging Holding has changed over time.
Is Graphic Packaging Holding Company Growing?
On average over the last three years, Graphic Packaging Holding Company has grown earnings per share (EPS) by 14% each year (using a line of best fit). In the last year, its revenue is up 29%.
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.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Graphic Packaging Holding Company Been A Good Investment?
Graphic Packaging Holding Company has generated a total shareholder return of 14% over three years, so most shareholders would be reasonably content. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary…
Mike Doss is paid around the same as most CEOs of similar size companies.
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. As a result of these considerations, I would suggest the CEO pay is reasonable. Shareholders may want to check for free if Graphic Packaging Holding insiders are buying or selling shares.
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
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 editorial-team@simplywallst.com.
