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In 2014 Seifi Ghasemi was appointed CEO of Air Products and Chemicals, Inc. (NYSE:APD). First, this article will compare CEO compensation with compensation at other large companies. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Seifi Ghasemi’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Air Products and Chemicals, Inc. has a market cap of US$45b, and is paying total annual CEO compensation of US$14m. (This is based on the year to September 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$1.3m. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$11m. Once you start looking at very large companies, you need to take a broader range, because there simply aren’t that many of them.
That means Seifi Ghasemi receives fairly typical remuneration for the CEO of a large company. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Air Products and Chemicals has changed from year to year.
Is Air Products and Chemicals, Inc. Growing?
Over the last three years Air Products and Chemicals, Inc. has grown its earnings per share (EPS) by an average of 13% per year (using a line of best fit). Its revenue is up 3.1% over last year.
This demonstrates that the company has been improving recently. A good result. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to check this free visual report on analyst forecasts for future earnings.
Has Air Products and Chemicals, Inc. Been A Good Investment?
Boasting a total shareholder return of 63% over three years, Air Products and Chemicals, 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.
Seifi Ghasemi is paid around the same as most CEOs of large companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! Shareholders may want to check for free if Air Products and Chemicals insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.