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We Think Minerals Technologies Inc.'s (NYSE:MTX) CEO Compensation Package Needs To Be Put Under A Microscope
Key Insights
- Minerals Technologies will host its Annual General Meeting on 15th of May
- Total pay for CEO Doug Dietrich includes US$1.05m salary
- The overall pay is 58% above the industry average
- Over the past three years, Minerals Technologies' EPS fell by 4.5% and over the past three years, the total loss to shareholders 0.9%
Minerals Technologies Inc. (NYSE:MTX) has not performed well recently and CEO Doug Dietrich will probably need to up their game. At the upcoming AGM on 15th of May, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.
Check out our latest analysis for Minerals Technologies
How Does Total Compensation For Doug Dietrich Compare With Other Companies In The Industry?
According to our data, Minerals Technologies Inc. has a market capitalization of US$2.6b, and paid its CEO total annual compensation worth US$8.4m over the year to December 2023. That's a notable increase of 12% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.0m.
On comparing similar companies from the American Chemicals industry with market caps ranging from US$2.0b to US$6.4b, we found that the median CEO total compensation was US$5.3m. This suggests that Doug Dietrich is paid more than the median for the industry. Furthermore, Doug Dietrich directly owns US$14m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2023 | 2022 | Proportion (2023) |
| Salary | US$1.0m | US$1.0m | 13% |
| Other | US$7.3m | US$6.4m | 87% |
| Total Compensation | US$8.4m | US$7.4m | 100% |
On an industry level, roughly 19% of total compensation represents salary and 81% is other remuneration. In Minerals Technologies' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Minerals Technologies Inc.'s Growth Numbers
Over the last three years, Minerals Technologies Inc. has shrunk its earnings per share by 4.5% per year. In the last year, its revenue changed by just 0.3%.
Few shareholders would be pleased to read that EPS have declined. And the flat revenue is seriously uninspiring. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Minerals Technologies Inc. Been A Good Investment?
With a three year total loss of 0.9% for the shareholders, Minerals Technologies Inc. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.
In Summary...
Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 2 warning signs for Minerals Technologies that investors should be aware of in a dynamic business environment.
Important note: Minerals Technologies is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
About NYSE:MTX
Minerals Technologies
Develops, produces, and markets various mineral, mineral-based products and services.
Very undervalued with excellent balance sheet.
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