Doug Dietrich has been the CEO of Minerals Technologies Inc. (NYSE:MTX) since 2016, and this article will examine the executive’s compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Minerals Technologies.
See our latest analysis for Minerals Technologies
Comparing Minerals Technologies Inc.’s CEO Compensation With the industry
Our data indicates that Minerals Technologies Inc. has a market capitalization of US$1.5b, and total annual CEO compensation was reported as US$5.4m for the year to December 2019. We note that’s an increase of 13% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$998k.
On comparing similar companies from the same industry with market caps ranging from US$1.0b to US$3.2b, we found that the median CEO total compensation was US$5.5m. From this we gather that Doug Dietrich is paid around the median for CEOs in the industry. Moreover, Doug Dietrich also holds US$3.7m worth of Minerals Technologies stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | US$998k | US$898k | 18% |
| Other | US$4.4m | US$3.9m | 82% |
| Total Compensation | US$5.4m | US$4.8m | 100% |
Speaking on an industry level, nearly 19% of total compensation represents salary, while the remainder of 81% is other remuneration. Minerals Technologies is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If non-salary compensation dominates total pay, it’s an indicator that the executive’s salary is tied to company performance.
A Look at Minerals Technologies Inc.’s Growth Numbers
Earnings per share at Minerals Technologies Inc. are much the same as they were three years ago, albeit slightly lower. It saw its revenue drop 2.4% over the last year.
The lack of earnings growth is certainly unimpressive. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Minerals Technologies Inc. Been A Good Investment?
With a three year total loss of 41% for the shareholders, Minerals Technologies Inc. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude…
As previously discussed, Doug is compensated close to the median for companies of its size, and which belong to the same industry. Meanwhile, earnings growth and shareholder returns have been in the red for the last three years. We’d stop short of saying compensation is inappropriate, but we would understand if shareholders had questions regarding a future raise.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That’s why we did some digging and identified 2 warning signs for Minerals Technologies that investors should think about before committing capital to this stock.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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