Yahoo Finance Some Shareholders May find It Hard To Increase Ecolab Inc.'s (NYSE:ECL) CEO Compensation This Year
Key Insights
Ecolab's Annual General Meeting to take place on 2nd of May
Salary of US$1.24m is part of CEO Christophe Beck's total remuneration
The total compensation is similar to the average for the industry
Over the past three years, Ecolab's EPS grew by 13% and over the past three years, the total shareholder return was 1.3%
Under the guidance of CEO Christophe Beck, Ecolab Inc. (NYSE:ECL) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 2nd of May. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
View our latest analysis for Ecolab
How Does Total Compensation For Christophe Beck Compare With Other Companies In The Industry?
At the time of writing, our data shows that Ecolab Inc. has a market capitalization of US$63b, and reported total annual CEO compensation of US$16m for the year to December 2023. That's a notable increase of 78% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.2m.
For comparison, other companies in the American Chemicals industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$14m. So it looks like Ecolab compensates Christophe Beck in line with the median for the industry. Moreover, Christophe Beck also holds US$14m worth of Ecolab stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$1.2m | US$1.1m | 8% |
Other | US$14m | US$7.7m | 92% |
Total Compensation | US$16m | US$8.7m | 100% |
On an industry level, around 19% of total compensation represents salary and 81% is other remuneration. In Ecolab's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Ecolab Inc.'s Growth
Over the past three years, Ecolab Inc. has seen its earnings per share (EPS) grow by 13% per year. Its revenue is up 8.0% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Ecolab Inc. Been A Good Investment?
With a total shareholder return of 1.3% over three years, Ecolab Inc. has done okay by shareholders, but there's always room for improvement. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.
In Summary...
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 1 warning sign for Ecolab that investors should look into moving forward.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
