Is Minerals Technologies Inc.'s (NYSE:MTX) CEO Overpaid Relative To Its Peers?

By
Simply Wall St
Published
December 06, 2019
NYSE:MTX

Doug Dietrich became the CEO of Minerals Technologies Inc. (NYSE:MTX) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.

View our latest analysis for Minerals Technologies

How Does Doug Dietrich's Compensation Compare With Similar Sized Companies?

According to our data, Minerals Technologies Inc. has a market capitalization of US$1.9b, and paid its CEO total annual compensation worth US$4.8m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$898k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. 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$3.9m.

That means Doug Dietrich receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Minerals Technologies has changed over time.

NYSE:MTX CEO Compensation, December 6th 2019
NYSE:MTX CEO Compensation, December 6th 2019

Is Minerals Technologies Inc. Growing?

Over the last three years Minerals Technologies Inc. has grown its earnings per share (EPS) by an average of 7.2% per year (using a line of best fit). In the last year, its revenue changed by just 0.4%.

I'm not particularly impressed by the revenue growth, but it is good to see modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. 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 34%, Minerals Technologies Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

Doug Dietrich is paid around the same as most CEOs of similar size companies.

The per share growth could be better, in our view. And we think the shareholder returns - over three years - have been underwhelming. So many would argue that the CEO is certainly not underpaid. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Minerals Technologies.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.

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. Thank you for reading.

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