Shareholders Will Likely Find Mettler-Toledo International Inc.'s (NYSE:MTD) CEO Compensation Acceptable

Key Insights

• Mettler-Toledo International will host its Annual General Meeting on 1st of May
• Salary of US$1.06m is part of CEO Patrick Kaltenbach's total remuneration
• Total compensation is 43% below industry average
• Over the past three years, Mettler-Toledo International's EPS grew by 7.6% and over the past three years, the total loss to shareholders 17%

We've discovered 2 warning signs about Mettler-Toledo International. View them for free.

Performance at Mettler-Toledo International Inc. (NYSE:MTD) has been rather uninspiring recently and shareholders may be wondering how CEO Patrick Kaltenbach plans to fix this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 1st of May. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

See our latest analysis for Mettler-Toledo International

How Does Total Compensation For Patrick Kaltenbach Compare With Other Companies In The Industry?

At the time of writing, our data shows that Mettler-Toledo International Inc. has a market capitalization of US$22b, and reported total annual CEO compensation of US$6.8m for the year to December 2024. That's a notable decrease of 19% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.1m.

For comparison, other companies in the American Life Sciences industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$12m. This suggests that Patrick Kaltenbach is paid below the industry median. Moreover, Patrick Kaltenbach also holds US$1.8m worth of Mettler-Toledo International stock directly under their own name.

Speaking on an industry level, nearly 13% of total compensation represents salary, while the remainder of 87% is other remuneration. Mettler-Toledo International pays out 16% of remuneration in the form of a salary, significantly higher than the industry average. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Mettler-Toledo International Inc.'s Growth

Over the past three years, Mettler-Toledo International Inc. has seen its earnings per share (EPS) grow by 7.6% per year. Its revenue is up 2.2% over the last year.

We would argue that the improvement in revenue is good, but isn't particularly impressive, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Mettler-Toledo International Inc. Been A Good Investment?

Since shareholders would have lost about 17% over three years, some Mettler-Toledo International Inc. investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

The fact that shareholders are sitting on a loss is certainly disheartening. Perhaps the poor price performance may have something to do with the the fact that earnings per share growth has not been performing as strongly either. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 2 warning signs for Mettler-Toledo International that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.