In This Article:
Bob Patterson has been the CEO of Avient Corporation (NYSE:AVNT) since 2014, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
View our latest analysis for Avient
How Does Total Compensation For Bob Patterson Compare With Other Companies In The Industry?
Our data indicates that Avient Corporation has a market capitalization of US$3.3b, and total annual CEO compensation was reported as US$6.1m for the year to December 2019. That's mostly flat as compared to the prior year's compensation. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.1m.
In comparison with other companies in the industry with market capitalizations ranging from US$2.0b to US$6.4b, the reported median CEO total compensation was US$5.0m. From this we gather that Bob Patterson is paid around the median for CEOs in the industry. Furthermore, Bob Patterson directly owns US$17m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | US$1.1m | US$1.0m | 17% |
| Other | US$5.1m | US$5.1m | 83% |
| Total Compensation | US$6.1m | US$6.1m | 100% |
On an industry level, around 19% of total compensation represents salary and 81% is other remuneration. Although there is a difference in how total compensation is set, Avient more or less reflects the market in terms of setting the salary. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Avient Corporation's Growth
Over the last three years, Avient Corporation has shrunk its earnings per share by 29% per year. Revenue was pretty flat on last year.
The decline in EPS is a bit concerning. And the flat revenue is seriously uninspiring. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Avient Corporation Been A Good Investment?
With a three year total loss of 16% for the shareholders, Avient Corporation would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
As we touched on above, Avient Corporation is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Meanwhile, EPS growth and shareholder returns have been in the red for the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.