Chart Industries, Inc.'s (NYSE:GTLS) CEO Will Probably Find It Hard To See A Huge Raise This Year

Key Insights

• Chart Industries will host its Annual General Meeting on 20th of May
• Salary of US$1.10m is part of CEO Jill Evanko's total remuneration
• The total compensation is similar to the average for the industry
• Chart Industries' three-year loss to shareholders was 1.6% while its EPS grew by 62% over the past three years

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In the past three years, the share price of Chart Industries, Inc. (NYSE:GTLS) has struggled to generate growth for its shareholders. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 20th of May. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Chart Industries

Comparing Chart Industries, Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that Chart Industries, Inc. has a market capitalization of US$7.7b, and reported total annual CEO compensation of US$7.7m for the year to December 2024. Notably, that's an increase of 42% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.1m.

For comparison, other companies in the American Machinery industry with market capitalizations ranging between US$4.0b and US$12b had a median total CEO compensation of US$9.0m. From this we gather that Jill Evanko is paid around the median for CEOs in the industry. Furthermore, Jill Evanko directly owns US$24m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 15% of total compensation represents salary and 85% is other remuneration. Chart Industries 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.

Chart Industries, Inc.'s Growth

Over the past three years, Chart Industries, Inc. has seen its earnings per share (EPS) grow by 62% per year. It achieved revenue growth of 12% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Chart Industries, Inc. Been A Good Investment?

Since shareholders would have lost about 1.6% over three years, some Chart Industries, Inc. investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Chart Industries that you should be aware of before investing.

Switching gears from Chart Industries, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.