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In 2015 Mark Vergnano was appointed CEO of The Chemours Company ( NYSE:CC ). 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Mark Vergnano’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that The Chemours Company has a market cap of US$6.4b, and is paying total annual CEO compensation of US$9.9m. (This number is for the twelve months until 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$983k. When we examined a selection of companies with market caps ranging from US$4.0b to US$12b, we found the median CEO compensation was US$6.4m.
It would therefore appear that The Chemours Company pays Mark Vergnano more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Chemours has changed from year to year.
Is The Chemours Company Growing?
The Chemours Company has increased its earnings per share (EPS) by an average of 108% a year, over the last three years (using a line of best fit). Its revenue is up 14% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future .
Has The Chemours Company Been A Good Investment?
Boasting a total shareholder return of 982% over three years, The Chemours Company has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared total CEO remuneration at The Chemours Company with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Shareholders may want to check for free if Chemours insiders are buying or selling shares.
Important note: Chemours may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com .