Yahoo Finance How Much is Westlake Chemical Corporation's (NYSE:WLK) CEO Getting Paid?
Albert Chao has been the CEO of Westlake Chemical Corporation (NYSE:WLK) since 2004. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Westlake Chemical
How Does Albert Chao's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Westlake Chemical Corporation has a market cap of US$5.0b, and reported total annual CEO compensation of US$9.0m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$1.1m. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$4.0b to US$12b. The median total CEO compensation was US$7.2m.
So Albert Chao receives a similar amount to the median CEO pay, amongst the companies we looked at. 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 Westlake Chemical, below.
Is Westlake Chemical Corporation Growing?
On average over the last three years, Westlake Chemical Corporation has grown earnings per share (EPS) by 3.2% each year (using a line of best fit). It saw its revenue drop 6.0% over the last year.
I would prefer it if there was revenue growth, but it is good to see EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. Shareholders might be interested in this free visualization of analyst forecasts.
Has Westlake Chemical Corporation Been A Good Investment?
With a three year total loss of 37%, Westlake Chemical Corporation would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Albert Chao is paid around the same as most CEOs of similar size companies.
The per share growth could be better, in our view. And it's hard to argue that the returns over the last three years have delighted. So it would take a bold person to suggest the pay is too modest. Shifting gears from CEO pay for a second, we've picked out 3 warning signs for Westlake Chemical that investors should be aware of in a dynamic business environment.
If you want to buy a stock that is better than Westlake Chemical, this free list of high return, low debt companies is a great place to look.
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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