Stock Analysis

How Much Is Matthews International Corporation (NASDAQ:MATW) Paying Its CEO?

  •  Updated
NasdaqGS:MATW
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Joseph Bartolacci has been the CEO of Matthews International Corporation (NASDAQ:MATW) since 2006, 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 Matthews International.

Check out our latest analysis for Matthews International

How Does Total Compensation For Joseph Bartolacci Compare With Other Companies In The Industry?

At the time of writing, our data shows that Matthews International Corporation has a market capitalization of US$1.1b, and reported total annual CEO compensation of US$6.6m for the year to September 2020. That's a slightly lower by 4.9% over the previous year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$922k.

On comparing similar companies from the same industry with market caps ranging from US$400m to US$1.6b, we found that the median CEO total compensation was US$4.1m. Accordingly, our analysis reveals that Matthews International Corporation pays Joseph Bartolacci north of the industry median. What's more, Joseph Bartolacci holds US$10m 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$922k US$892k 14%
Other US$5.7m US$6.0m 86%
Total CompensationUS$6.6m US$6.9m100%

On an industry level, around 23% of total compensation represents salary and 77% is other remuneration. It's interesting to note that Matthews International allocates a smaller portion of compensation to salary in comparison to the broader 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
NasdaqGS:MATW CEO Compensation February 22nd 2021

Matthews International Corporation's Growth

Matthews International Corporation has reduced its earnings per share by 101% a year over the last three years. Revenue was pretty flat on last year.

The decline in EPS is a bit concerning. And the flat revenue is seriously uninspiring. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Matthews International Corporation Been A Good Investment?

With a three year total loss of 31% for the shareholders, Matthews International Corporation would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As we noted earlier, Matthews International pays its CEO higher than the norm for similar-sized companies belonging to the same industry. Unfortunately, this doesn't look great when you see shareholder returns have been negative over the last three years. What's equally worrying is that the company isn't growing by our analysis. Considering such poor performance, we think shareholders might be concerned if the CEO's compensation were to grow.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 3 warning signs for Matthews International you should be aware of, and 1 of them is a bit concerning.

Switching gears from Matthews International, 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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