Nick Stanage has been the CEO of Hexcel Corporation (NYSE:HXL) since 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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 Nick Stanage’s Compensation Compare With Similar Sized Companies?
According to our data, Hexcel Corporation has a market capitalization of US$5.1b, and pays its CEO total annual compensation worth US$7.0m. (This is based on the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$958k. We looked at a group of companies with market capitalizations from US$4.0b to US$12b, and the median CEO compensation was US$6.9m.
That means Nick Stanage receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Hexcel has changed over time.
Is Hexcel Corporation Growing?
Over the last three years Hexcel Corporation has grown its earnings per share (EPS) by an average of 12% per year. It achieved revenue growth of 10% 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 Hexcel Corporation Been A Good Investment?
With a total shareholder return of 30% over three years, Hexcel Corporation shareholders would, in general, be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
Remuneration for Nick Stanage is close enough to the median pay for a CEO of a similar sized company .
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. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Hexcel.
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.