In This Article:
Frank Sullivan became the CEO of RPM International Inc. (NYSE:RPM) in 2002. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for RPM International
How Does Frank Sullivan's Compensation Compare With Similar Sized Companies?
According to our data, RPM International Inc. has a market capitalization of US$8.9b, and paid its CEO total annual compensation worth US$8.4m over the year to May 2019. That's a notable increase of 65% on last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$975k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations from US$4.0b to US$12b, and the median CEO total compensation was US$6.8m.
So Frank Sullivan receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at RPM International, below.
Is RPM International Inc. Growing?
RPM International Inc. has reduced its earnings per share by an average of 3.2% a year, over the last three years (measured with a line of best fit). Its revenue is up 4.6% over last year.
Unfortunately, earnings per share have trended lower over the last three years. The fairly low revenue growth fails to impress given that the earnings per share is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. You might want to check this free visual report on analyst forecasts for future earnings.
Has RPM International Inc. Been A Good Investment?
Most shareholders would probably be pleased with RPM International Inc. for providing a total return of 40% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
Remuneration for Frank Sullivan is close enough to the median pay for a CEO of a similar sized company .
We're not seeing great strides in earnings per share, but the company has clearly pleased some investors, given the returns over the last three years. So we can't see a reason to suggest the pay is inappropriate. Shareholders may want to check for free if RPM International insiders are buying or selling shares.