Does FMC Corporation's (NYSE:FMC) CEO Pay Reflect Performance?
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Pierre Brondeau has been the CEO of FMC Corporation (NYSE:FMC) since 2010. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for FMC
How Does Pierre Brondeau's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that FMC Corporation has a market cap of US$11b, and is paying total annual CEO compensation of US$10.0m. (This is based on the year to December 2018). That's less than last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.2m. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$11m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
That means Pierre Brondeau receives fairly typical remuneration for the CEO of a large company. 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 FMC, below.
Is FMC Corporation Growing?
FMC Corporation has increased its earnings per share (EPS) by an average of 95% a year, over the last three years (using a line of best fit). Its revenue is up 42% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. You might want to check this free visual report on analyst forecasts for future earnings.
Has FMC Corporation Been A Good Investment?
Boasting a total shareholder return of 98% over three years, FMC Corporation has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Pierre Brondeau is paid around the same as most CEOs of large companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Shareholders may want to check for free if FMC insiders are buying or selling shares.
Important note: FMC 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.
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 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. Thank you for reading.
