Kim Mink became the CEO of Innophos Holdings, Inc. (NASDAQ:IPHS) in 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 Kim Mink’s Compensation Compare With Similar Sized Companies?
Our data indicates that Innophos Holdings, Inc. is worth US$656m, and total annual CEO compensation was reported as US$3.4m for the year to December 2018. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$838k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2.7m.
So Kim Mink 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. It could be important to check this free visual depiction of what analysts expect for the future.
You can see, below, how CEO compensation at Innophos Holdings has changed over time.
Is Innophos Holdings, Inc. Growing?
Innophos Holdings, Inc. has reduced its earnings per share by an average of 13% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is down 2.9%.
Sadly for shareholders, earnings per share are actually down, over three years. 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.
Has Innophos Holdings, Inc. Been A Good Investment?
Given the total loss of 1.9% over three years, many shareholders in Innophos Holdings, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
Remuneration for Kim Mink is close enough to the median pay for a CEO of a similar sized company .
Returns have been disappointing and the company is not growing its earnings per share. Suffice it to say, we don’t think the CEO is underpaid! Whatever your view on compensation, you might want to check if insiders are buying or selling Innophos Holdings 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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