John Gottwald has been the CEO of Tredegar Corporation (NYSE:TG) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does John Gottwald’s Compensation Compare With Similar Sized Companies?
Our data indicates that Tredegar Corporation is worth US$501m, and total annual CEO compensation is US$539k. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$396k. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO compensation was US$1.6m.
Most shareholders would consider it a positive that John Gottwald takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it’s important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at Tredegar has changed from year to year.
Is Tredegar Corporation Growing?
Over the last three years Tredegar Corporation has grown its earnings per share (EPS) by an average of 62% per year. In the last year, its revenue is up 13%.
This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.
We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Tredegar Corporation Been A Good Investment?
Tredegar Corporation has served shareholders reasonably well, with a total return of 10% over three years. 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.
It looks like Tredegar Corporation pays its CEO less than similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. While some might be keen on seeing higher returns, our short analysis has not produced any evidence to suggest John Gottwald is overcompensated.
It’s great to see a company that pays its CEO reasonably, even while growing. But it would be nice if insiders were also buying shares. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Tredegar.
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
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 email@example.com.