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Doug Dietrich became the CEO of Minerals Technologies Inc. (NYSE:MTX) in 2016. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Doug Dietrich’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Minerals Technologies Inc. has a market cap of US$1.8b, and is paying total annual CEO compensation of US$4.8m. (This figure is for the year to December 2018). That’s actually a decrease on the year before. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$898k. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO total compensation was US$4.2m.
So Doug Dietrich 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.
The graphic below shows how CEO compensation at Minerals Technologies has changed from year to year.
Is Minerals Technologies Inc. Growing?
Over the last three years Minerals Technologies Inc. has grown its earnings per share (EPS) by an average of 20% per year (using a line of best fit). In the last year, its revenue is up 6.6%.
This demonstrates that the company has been improving recently. A good result. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.
Has Minerals Technologies Inc. Been A Good Investment?
With a three year total loss of 9.4%, Minerals Technologies Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
Doug Dietrich is paid around what is normal the leaders of comparable size companies.
We think that the EPS growth is very pleasing, but it’s disappointing to see negative shareholder returns over three years. Considering the the positives we don’t think the CEO pays is too high, but it’s certainly hard to argue it is too low. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Minerals Technologies (free visualization of insider trades).
Important note: Minerals Technologies may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.