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Kim Mink has been the CEO of Innophos Holdings, Inc. (NASDAQ:IPHS) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. 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$586m, and total annual CEO compensation is US$3.5m. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$788k. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO compensation was US$1.5m.
Thus we can conclude that Kim Mink receives more in total compensation than the median of a group of companies in the same market, and of similar size to Innophos Holdings, Inc.. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Innophos Holdings, below.
Is Innophos Holdings, Inc. Growing?
Over the last three years Innophos Holdings, Inc. has shrunk its earnings per share by an average of 12% per year. It achieved revenue growth of 15% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Innophos Holdings, Inc. Been A Good Investment?
Innophos Holdings, Inc. has served shareholders reasonably well, with a total return of 27% over three years. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
We compared the total CEO remuneration paid by Innophos Holdings, Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.We think many shareholders would be underwhelmed with the business growth over the last three years.
While shareholder returns are acceptable, they don’t delight. So we doubt many shareholders would consider the CEO pay to be particularly modest! Shareholders may want to check for free if Innophos Holdings 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.