In 2016 Mike Doss was appointed CEO of Graphic Packaging Holding Company (NYSE:GPK). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. 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 Mike Doss’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Graphic Packaging Holding Company has a market cap of US$3.7b, and is paying total annual CEO compensation of US$6.0m. (This number is for the twelve months until December 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$927k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$4.9m.
So Mike Doss receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Graphic Packaging Holding, below.
Is Graphic Packaging Holding Company Growing?
Over the last three years Graphic Packaging Holding Company has grown its earnings per share (EPS) by an average of 11% per year (using a line of best fit). In the last year, its revenue is up 37%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Shareholders might be interested in this free visualization of analyst forecasts.
Has Graphic Packaging Holding Company Been A Good Investment?
Graphic Packaging Holding Company has not done too badly by shareholders, with a total return of 3.9%, 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.
Remuneration for Mike Doss is close enough to the median pay for a CEO of a similar sized company .
The company is growing EPS but shareholder returns have been sound but not amazing. So upon reflection one could argue that the CEO pay is quite reasonable. Shareholders may want to check for free if Graphic Packaging Holding insiders are buying or selling shares.
If you want to buy a stock that is better than Graphic Packaging Holding, this free list of high return, low debt companies is a great place to look.
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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.