Shareholders Would Not Be Objecting To Chart Industries, Inc.'s (NYSE:GTLS) CEO Compensation And Here's Why

By
Simply Wall St
Published
May 07, 2021
NYSE:GTLS

The performance at Chart Industries, Inc. (NYSE:GTLS) has been quite strong recently and CEO Jill Evanko has played a role in it. Coming up to the next AGM on 13 May 2021, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Check out our latest analysis for Chart Industries

How Does Total Compensation For Jill Evanko Compare With Other Companies In The Industry?

At the time of writing, our data shows that Chart Industries, Inc. has a market capitalization of US$5.6b, and reported total annual CEO compensation of US$6.9m for the year to December 2020. That's a notable increase of 31% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$950k.

In comparison with other companies in the industry with market capitalizations ranging from US$4.0b to US$12b, the reported median CEO total compensation was US$6.5m. From this we gather that Jill Evanko is paid around the median for CEOs in the industry. What's more, Jill Evanko holds US$3.5m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component20202019Proportion (2020)
Salary US$950k US$850k 14%
Other US$5.9m US$4.4m 86%
Total CompensationUS$6.9m US$5.3m100%

Talking in terms of the industry, salary represented approximately 19% of total compensation out of all the companies we analyzed, while other remuneration made up 81% of the pie. Chart Industries sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
NYSE:GTLS CEO Compensation May 7th 2021

A Look at Chart Industries, Inc.'s Growth Numbers

Chart Industries, Inc.'s earnings per share (EPS) grew 34% per year over the last three years. Its revenue is down 5.2% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in 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?

Boasting a total shareholder return of 152% over three years, Chart Industries, Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Chart Industries.

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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