Yahoo Finance Is ArcelorMittal’s (AMS:MT) CEO Paid Enough Relative To Peers?
Lakshmi Mittal became the CEO of ArcelorMittal (AMS:MT) in 1976. This analysis aims first to contrast CEO compensation with other large companies. Next, we’ll consider growth that the business demonstrates. 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.
View our latest analysis for ArcelorMittal
How Does Lakshmi Mittal’s Compensation Compare With Similar Sized Companies?
Our data indicates that ArcelorMittal is worth €21.8b, and total annual CEO compensation is US$4m. That’s a notable increase of 148% on last year. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO compensation was US$4m.
So Lakshmi Mittal 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 ArcelorMittal, below.
Is ArcelorMittal Growing?
ArcelorMittal has increased its earnings per share (EPS) by an average of 94% a year, over the last three years Its revenue is up 20% over last year.
This demonstrates that the company has been improving recently. A good result. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.
It could be important to check this free visual depiction of what analysts expect for the future.
Has ArcelorMittal Been A Good Investment?
I think that the total shareholder return of 83%, over three years, would leave most ArcelorMittal shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
Lakshmi Mittal is paid around the same as most CEOs of large companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at ArcelorMittal.
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
