We think Matthews International Corporation (NASDAQ:MATW) CEO compensation should be put under the microscope

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International Matthews Society (NASDAQ:MATW) hasn’t performed well recently and CEO Joseph Bartolacci will likely need to up his game. Shareholders will be interested in what the board has to say about the performance turnaround at the upcoming AGM. of February 17, 2022. This would also be an opportunity for shareholders to influence management by voting on corporate resolutions such as executive compensation, which could impact the farm in a significant way. The data we present below explains why we believe CEO compensation is not consistent with recent performance.

See our latest analysis for Matthews International

Matthews International Corporation CEO Compensation Comparison with the Industry

According to our data, Matthews International Corporation has a market capitalization of $1.1 billion and paid its CEO a total annual compensation of $6.8 million in the year to September 2021. This is a modest increase of 3.6% over the previous year. We think total compensation is more important, but our data shows the CEO salary is lower, at $944,000.

Looking at similarly sized companies in the industry with market capitalizations between US$400 million and US$1.6 billion, we found that the median total compensation for CEOs in this group was US$3.0 million. US dollars. This suggests that Joseph Bartolacci is paid more than the industry median. Additionally, Joseph Bartolacci also owns $11 million worth of Matthews International stock directly under their own name, which tells us that they have a significant personal stake in the company.

Making up 2021 2020 Percentage (2021)
Salary $944,000 $922,000 14%
Other $5.9 million $5.7 million 86%
The total compensation $6.8 million $6.6 million 100%

Speaking at the industry level, nearly 25% of total compensation is salary, while the remaining 75% is other compensation. Matthews International sets aside a smaller share of compensation for salary, compared to the industry as a whole. If total compensation is skewed towards non-salary benefits, this indicates that CEO compensation is tied to company performance.

NasdaqGS: MATW CEO Compensation February 11, 2022

A Look at Matthews International Corporation’s Growth Numbers

Over the past three years, Matthews International Corporation has reduced its earnings per share by 31% per year. Last year, its turnover increased by 13%.

The drop in BPA is a bit of a concern. And while it’s good to see good revenue growth recently, the growth isn’t really fast enough for us to put aside my concerns about EPS. It’s hard to say the company is firing on all cylinders, so shareholders might be opposed to high CEO pay. Historical performance can sometimes be a good indicator of what’s to come, but if you want to take a peek into the future of the company, this might interest you. free visualization of analyst forecasts.

Was Matthews International Corporation a good investment?

Considering the total shareholder loss of 11% over three years, many Matthews International Corporation shareholders are probably rather dissatisfied, to say the least. Shareholders would therefore likely want the company to be less generous with CEO compensation.

In summary…

Not only did shareholders not see a favorable return on their investment, but the company also did not perform well. Few shareholders would be willing to give the CEO a pay raise. At the upcoming AGM, management will have the opportunity to explain how they plan to get the business back on track and address investor concerns.

CEO compensation is just one of many factors that must be considered when reviewing company performance. We have identified 2 warning signs for Matthews International (1 should not be ignored!) which you should be aware of before investing here.

Shift from Matthews International, if you are looking for a clean track record and superior returns, this free The list of high yield, low debt companies is a great place to look.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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