Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card!
Mike Bless has been the CEO of Century Aluminum Company ( NASDAQ:CENX ) since 2011. First, this article will compare CEO compensation with compensation at similar sized companies. 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.
How Does Mike Bless's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Century Aluminum Company has a market cap of US$515m, and is paying total annual CEO compensation of US$6.5m. (This number is for the twelve months until December 2018). Notably, that's an increase of 47% over the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$870k. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO total compensation was US$1.8m.
As you can see, Mike Bless is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Century Aluminum Company is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Century Aluminum has changed over time.
Is Century Aluminum Company Growing?
On average over the last three years, Century Aluminum Company has grown earnings per share (EPS) by 53% each year (using a line of best fit). Its revenue is up 15% over last year.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Century Aluminum Company Been A Good Investment?
Given the total loss of 20% over three years, many shareholders in Century Aluminum Company are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We compared total CEO remuneration at Century Aluminum Company with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. However, the returns to investors are far less impressive, over the same period. This doesn't look great when you consider CEO remuneration is up on last year. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. So you may want to check if insiders are buying Century Aluminum shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.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. Thank you for reading.