In This Article:
In 2017 Jugal Vijayvargiya was appointed CEO of Materion Corporation (NYSE:MTRN). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. 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.
Check out our latest analysis for Materion
How Does Jugal Vijayvargiya's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Materion Corporation has a market cap of US$1.4b, and is paying total annual CEO compensation of US$4.3m. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$718k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$4.1m.
That means Jugal Vijayvargiya receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Materion has changed from year to year.
Is Materion Corporation Growing?
Over the last three years Materion Corporation has grown its earnings per share (EPS) by an average of 3.5% per year (using a line of best fit). It saw its revenue drop -1.7% over the last year.
I generally like to see a little revenue growth, but the improvement in EPS is good. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Shareholders might be interested in this free visualization of analyst forecasts.
Has Materion Corporation Been A Good Investment?
I think that the total shareholder return of 131%, over three years, would leave most Materion Corporation shareholders smiling. 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...
Jugal Vijayvargiya is paid around the same as most CEOs of similar size companies.
While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So considering most shareholders would be happy, we'd say the CEO pay is appropriate. Shareholders may want to check for free if Materion insiders are buying or selling shares.