Stock Analysis

Our View On Chemours' (NYSE:CC) CEO Pay

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Mark Vergnano has been the CEO of The Chemours Company (NYSE:CC) since 2015, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Chemours pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Chemours

How Does Total Compensation For Mark Vergnano Compare With Other Companies In The Industry?

At the time of writing, our data shows that The Chemours Company has a market capitalization of US$4.3b, and reported total annual CEO compensation of US$7.7m for the year to December 2019. That's a slightly lower by 4.7% over the previous year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.0m.

For comparison, other companies in the same industry with market capitalizations ranging between US$2.0b and US$6.4b had a median total CEO compensation of US$5.5m. Accordingly, our analysis reveals that The Chemours Company pays Mark Vergnano north of the industry median. Furthermore, Mark Vergnano directly owns US$20m worth of shares in the company, implying that they are deeply invested in the company's success.

Component20192018Proportion (2019)
Salary US$1.0m US$1.0m 13%
Other US$6.7m US$7.0m 87%
Total CompensationUS$7.7m US$8.1m100%

On an industry level, around 19% of total compensation represents salary and 81% is other remuneration. In Chemours' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

NYSE:CC CEO Compensation December 8th 2020

A Look at The Chemours Company's Growth Numbers

The Chemours Company has reduced its earnings per share by 60% a year over the last three years. It saw its revenue drop 12% over the last year.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has The Chemours Company Been A Good Investment?

Given the total shareholder loss of 38% over three years, many shareholders in The Chemours Company are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As previously discussed, Mark is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. This doesn't look good against shareholder returns, which have been negative for the past three years. To make matters worse, EPS growth has also been negative during this period. Considering such poor performance, we think shareholders might be concerned if the CEO's compensation were to grow.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 3 warning signs for Chemours that investors should think about before committing capital to this stock.

Important note: Chemours is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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