Adam Chase has been the CEO of Chase Corporation (NYSEMKT:CCF) since 2015. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Adam Chase’s Compensation Compare With Similar Sized Companies?
Our data indicates that Chase Corporation is worth US$914m, and total annual CEO compensation was reported as US$1.9m for the year to August 2019. Notably, that’s an increase of 15% over the year before. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$567k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO total compensation was US$2.5m.
So Adam Chase is paid around the average of 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 a visual representation of the CEO compensation at Chase, below.
Is Chase Corporation Growing?
On average over the last three years, Chase Corporation has shrunk earnings per share by 5.0% each year (measured with a line of best fit). In the last year, its revenue is down 6.5%.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Chase Corporation Been A Good Investment?
Chase Corporation has not done too badly by shareholders, with a total return of 9.9%, over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
Adam Chase is paid around what is normal the leaders of comparable size companies.
We’re not seeing great strides in earnings per share, and total returns were decent but not amazing in the last three years. Shareholders might not love the fact the CEO remuneration is up on last year. We do not think the CEO pay is a problem, but it’s probably fair to say that many shareholders would like to see improved performance, before any pay rise occurs. Whatever your view on compensation, you might want to check if insiders are buying or selling Chase shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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