In This Article:
Joe Gorder became the CEO of Valero Energy Corporation (NYSE:VLO) in 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Valero Energy
How Does Joe Gorder's Compensation Compare With Similar Sized Companies?
According to our data, Valero Energy Corporation has a market capitalization of US$34b, and paid its CEO total annual compensation worth US$19m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.7m. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$11m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
Thus we can conclude that Joe Gorder receives more in total compensation than the median of a group of large companies in the same market as Valero Energy Corporation. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Valero Energy has changed over time.
Is Valero Energy Corporation Growing?
Valero Energy Corporation has increased its earnings per share (EPS) by an average of 17% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 5.7%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Shareholders might be interested in this free visualization of analyst forecasts.
Has Valero Energy Corporation Been A Good Investment?
Most shareholders would probably be pleased with Valero Energy Corporation for providing a total return of 67% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
We examined the amount Valero Energy Corporation pays its CEO, and compared it to the amount paid by other large companies. As discussed above, we discovered that the company pays more than the median of that group.