Is Rogers Corporation's (NYSE:ROG) CEO Being Overpaid?

In 2011 Bruce Hoechner was appointed CEO of Rogers Corporation (NYSE:ROG). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. 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.

See our latest analysis for Rogers

How Does Bruce Hoechner's Compensation Compare With Similar Sized Companies?

Our data indicates that Rogers Corporation is worth US$1.9b, and total annual CEO compensation was reported as US$4.0m for the year to December 2019. Notably, that's an increase of 9.9% over the year before. While we always look at total compensation first, we note that the salary component is less, at US$700k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO total compensation of that group was US$4.7m.

Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Rogers stands. On an industry level, roughly 36% of total compensation represents salary and 64% is other remuneration. It's interesting to note that Rogers allocates a smaller portion of compensation to salary in comparison to the broader industry.

That means Bruce Hoechner 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 a visual representation of the CEO compensation at Rogers, below.

Is Rogers Corporation Growing?

Over the last three years Rogers Corporation has seen earnings per share (EPS) move in a positive direction by an average of 7.5% per year (using a line of best fit). Its revenue is up 2.2% over last year.

I'd prefer higher revenue growth, but it is good to see modest EPS growth. Considering these factors I'd say performance has been pretty decent, though not amazing. You might want to check this free visual report on analyst forecasts for future earnings.

Has Rogers Corporation Been A Good Investment?

Rogers Corporation has generated a total shareholder return of 18% over three years, so most shareholders would be reasonably content. 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.

In Summary...

Bruce Hoechner is paid around the same as most CEOs of similar size companies.

The company isn't showing particularly great growth, and shareholder turns haven't been particularly inspiring in the last few years. But we don't think the CEO compensation is a problem. Looking into other areas, we've picked out 3 warning signs for Rogers that investors should think about before committing capital to this stock.

If you want to buy a stock that is better than Rogers, this free list of high return, low debt companies is a great place to look.

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.

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