Yahoo Finance Shareholders Will Most Likely Find Vontier Corporation's (NYSE:VNT) CEO Compensation Acceptable
Key Insights
Vontier to hold its Annual General Meeting on 28th of May
Total pay for CEO Mark Morelli includes US$1.07m salary
Total compensation is similar to the industry average
Vontier's EPS grew by 2.5% over the past three years while total shareholder return over the past three years was 16%
Performance at Vontier Corporation (NYSE:VNT) has been reasonably good and CEO Mark Morelli has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 28th of May. Here is our take on why we think the CEO compensation looks appropriate.
Check out our latest analysis for Vontier
Comparing Vontier Corporation's CEO Compensation With The Industry
Our data indicates that Vontier Corporation has a market capitalization of US$6.3b, and total annual CEO compensation was reported as US$9.3m for the year to December 2023. We note that's an increase of 47% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.1m.
On examining similar-sized companies in the American Electronic industry with market capitalizations between US$4.0b and US$12b, we discovered that the median CEO total compensation of that group was US$8.9m. This suggests that Vontier remunerates its CEO largely in line with the industry average. Moreover, Mark Morelli also holds US$11m worth of Vontier 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$1.1m | US$1.0m | 12% |
Other | US$8.3m | US$5.3m | 88% |
Total Compensation | US$9.3m | US$6.4m | 100% |
Talking in terms of the industry, salary represented approximately 31% of total compensation out of all the companies we analyzed, while other remuneration made up 69% of the pie. In Vontier's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Vontier Corporation's Growth
Vontier Corporation has seen its earnings per share (EPS) increase by 2.5% a year over the past three years. In the last year, its revenue is down 4.3%.
We generally like to see a little revenue growth, but it is good to see a modest EPS growth at least. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Vontier Corporation Been A Good Investment?
Vontier Corporation has generated a total shareholder return of 16% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
To Conclude...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus 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. That's why we did some digging and identified 1 warning sign for Vontier that you should be aware of before investing.
Important note: Vontier is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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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.
