Mary Laschinger became the CEO of Veritiv Corporation (NYSE:VRTV) in 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Mary Laschinger’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Veritiv Corporation has a market cap of US$534m, and is paying total annual CEO compensation of US$7m. That’s less than last year. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO compensation of that group was US$2m.
As you can see, Mary Laschinger is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Veritiv Corporation is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
Is Veritiv Corporation Growing?
Veritiv Corporation has reduced its earnings per share by an average of 59% a year, over the last three years. It achieved revenue growth of 4.2% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Veritiv Corporation Been A Good Investment?
Since shareholders would have lost about 21% over three years, some Veritiv Corporation shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
We examined the amount Veritiv Corporation pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.We think many shareholders would be underwhelmed with the business growth over the last three years.
Arguably worse, investors are without a positive return for the last three years. In our opinion the CEO might be paid too generously! Shareholders may want to check for free if Veritiv Corporation insiders are buying or selling shares.
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.