Yahoo Finance Does International Flavors & Fragrances Inc.'s (NYSE:IFF) CEO Pay Compare Well With Peers?
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Andreas Fibig became the CEO of International Flavors & Fragrances Inc. (NYSE:IFF) in 2014. This analysis aims first to contrast CEO compensation with other large companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for International Flavors & Fragrances
How Does Andreas Fibig's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that International Flavors & Fragrances Inc. has a market cap of US$16b, and is paying total annual CEO compensation of US$8.5m. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.3m. We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO total compensation to be US$11m. (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).
That means Andreas Fibig receives fairly typical remuneration for the CEO of a large company. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at International Flavors & Fragrances, below.
Is International Flavors & Fragrances Inc. Growing?
Over the last three years International Flavors & Fragrances Inc. has shrunk its earnings per share by an average of 16% per year (measured with a line of best fit). It achieved revenue growth of 24% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has International Flavors & Fragrances Inc. Been A Good Investment?
International Flavors & Fragrances Inc. has served shareholders reasonably well, with a total return of 22% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
Andreas Fibig is paid around the same as most CEOs of large companies.
We're not seeing great strides in earnings per share, and total returns were decent but not amazing in the last three years. We wouldn't say the CEO pay is too high, but we'd venture the company should look to improve its business metrics (and share price) before paying any more. Whatever your view on compensation, you might want to check if insiders are buying or selling International Flavors & Fragrances shares (free trial).
If you want to buy a stock that is better than International Flavors & Fragrances, this free list of high return, low debt companies is a great place to look.
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.
