Key Insights

• Minerals Technologies will host its Annual General Meeting on 15th of May
• Total pay for CEO Doug Dietrich includes US$1.05m salary
• Total compensation is 58% above industry average
• Minerals Technologies' three-year loss to shareholders was 0.9% while its EPS was down 4.5% over the past three years

The results at Minerals Technologies Inc. (NYSE:MTX) have been quite disappointing recently and CEO Doug Dietrich bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 15th of May. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.

How Does Total Compensation For Doug Dietrich Compare With Other Companies In The Industry?

According to our data, Minerals Technologies Inc. has a market capitalization of US$2.6b, and paid its CEO total annual compensation worth US$8.4m over the year to December 2023. We note that's an increase of 12% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.0m.

On examining similar-sized companies in the American Chemicals industry with market capitalizations between US$2.0b and US$6.4b, we discovered that the median CEO total compensation of that group was US$5.3m. This suggests that Doug Dietrich is paid more than the median for the industry. Moreover, Doug Dietrich also holds US$14m worth of Minerals Technologies stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 19% of total compensation out of all the companies we analyzed, while other remuneration made up 81% of the pie. Minerals Technologies pays a modest slice of remuneration through salary, as compared 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.

A Look at Minerals Technologies Inc.'s Growth Numbers

Over the last three years, Minerals Technologies Inc. has shrunk its earnings per share by 4.5% per year. The trailing twelve months of revenue was pretty much the same as the prior period.

Few shareholders would be pleased to read that EPS have declined. 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 Minerals Technologies Inc. Been A Good Investment?

Since shareholders would have lost about 0.9% over three years, some Minerals Technologies Inc. investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Minerals Technologies that you should be aware of before investing.

Important note: Minerals Technologies 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.