John McConnell has been the CEO of Worthington Industries, Inc. (NYSE:WOR) since 1993. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does John McConnell’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Worthington Industries, Inc. has a market cap of US$2.1b, and is paying total annual CEO compensation of US$4.4m. (This number is for the twelve months until May 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$661k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$3.5m.
So John McConnell receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Worthington Industries has changed over time.
Is Worthington Industries, Inc. Growing?
On average over the last three years, Worthington Industries, Inc. has grown earnings per share (EPS) by 21% each year (using a line of best fit). Its revenue is up 17% over last year.
This demonstrates that the company has been improving recently. A good result. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Worthington Industries, Inc. Been A Good Investment?
With a total shareholder return of 8.9% over three years, Worthington Industries, Inc. has done okay by shareholders. 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 John McConnell 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. As a result of these considerations, I would suggest the CEO pay is reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Worthington Industries.
If you want to buy a stock that is better than Worthington Industries, this free list of high return, low debt companies is a great place to look.
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