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Should You Worry About Barnes Group Inc’s (NYSE:B) CEO Salary Level?

Patrick Dempsey became the CEO of Barnes Group Inc (NYSE:B) in 2013. 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 method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Barnes Group

How Does Patrick Dempsey’s Compensation Compare With Similar Sized Companies?

According to our data, Barnes Group Inc has a market capitalization of US$2.9b, and pays its CEO total annual compensation worth US$9m. We note that’s an increase of 38% above last year. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$5m.

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It would therefore appear that Barnes Group Inc pays Patrick Dempsey more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see, below, how CEO compensation at Barnes Group has changed over time.

NYSE:B CEO Compensation October 26th 18
NYSE:B CEO Compensation October 26th 18

Is Barnes Group Inc Growing?

On average over the last three years, Barnes Group Inc has shrunk earnings per share by 14% each year. In the last year, its revenue is up 9.7%.

Sadly for shareholders, earnings per share are actually down, over three years. And the modest revenue growth over 12 months isn’t much comfort against the reduced earnings per share. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.

It could be important to check this free visual depiction of what analysts expect for the future.

Has Barnes Group Inc Been A Good Investment?

I think that the total shareholder return of 72%, over three years, would leave most Barnes Group Inc shareholders smiling. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.

In Summary…

We examined the amount Barnes Group Inc pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

We think many shareholders would be underwhelmed with the business growth over the last three years.

However, we can’t argue with the strong returns to shareholders, over the same time period. Given this situation we doubt shareholders are particularly concerned about the CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Barnes Group Inc.

Or you might prefer examine intently this intuitive graph showing past earnings and revenue.

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.