Yahoo Finance How Much Did Glencore plc's (LON:GLEN) CEO Pocket Last Year?
Ivan Glasenberg became the CEO of Glencore plc (LON:GLEN) in 2002. This analysis aims first to contrast CEO compensation with other large companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Glencore
How Does Ivan Glasenberg's Compensation Compare With Similar Sized Companies?
Our data indicates that Glencore plc is worth UK£30b, and total annual CEO compensation was reported as US$1.5m for the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$1.4m. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$4.9m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
This would give shareholders a good impression of the company, since most large companies pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at Glencore has changed from year to year.
Is Glencore plc Growing?
Glencore plc has increased its earnings per share (EPS) by an average of 64% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 2.1%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. It could be important to check this free visual depiction of what analysts expect for the future.
Has Glencore plc Been A Good Investment?
Since shareholders would have lost about 5.3% over three years, some Glencore plc shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Glencore plc is currently paying its CEO below what is normal for large companies.
Considering the underlying business is growing earnings, this would suggest the pay is modest. Few would deny that the total shareholder return over the last three years could have been a lot better. We're not critical of the remuneration Ivan Glasenberg receives, but it would be good to see improved returns to shareholders before the remuneration grows too much. This sort of circumstance certainly justifies further research, because the investment returns might still come in the future. So you may want to check if insiders are buying Glencore shares with their own money (free access).
Important note: Glencore 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.
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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