Mitch Butier has been the CEO of

Avery Dennison Corporation

(

NYSE:AVY

) since 2016,nashville zoo brew at the zoo and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Avery Dennison.

Check out our latest analysis for Avery Dennison

How Does Total Compensation For Mitch Butier Compare With Other Companies In The Industry?

At the time of writing, our data shows that Avery Dennison Corporation has a market capitalization of US$12b, and reported total annual CEO compensation of US$8.5m for the year to December 2019. That's mostly flat as compared to the prior year's compensation. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.1m.

For comparison, other companies in the industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$12m. So it looks like Avery Dennison compensates Mitch Butier in line with the median for the industry. Moreover, Mitch Butier also holds US$30m worth of Avery Dennison stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component

2019

2018

Proportion (2019)

Salary

US$1.1m

US$1.1m

13%

Other

US$7.4m

US$7.6m

87%

Total Compensation

US$8.5m

US$8.7m

100%

On an industry level, around 13% of total compensation represents salary and 87% is other remuneration. Avery Dennison is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation

A Look at Avery Dennison Corporation's Growth Numbers

Avery Dennison Corporation's earnings per share (EPS) grew 11% per year over the last three years. Its revenue is down 4.4% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check

this free visual report on

analyst forecasts

for the company's future earnings.

.

Has Avery Dennison Corporation Been A Good Investment?

Boasting a total shareholder return of 40% over three years, Avery Dennison Corporation has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

Story continues

To Conclude...

As we touched on above, Avery Dennison Corporation is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. The company is growing EPS and total shareholder returns have been pleasing. So one could argue that CEO compensation is quite modest, if you consider company performance! Stockholders might even be okay with a bump in pay, seeing as how investor returns have been so strong.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted

2 warning signs for Avery Dennison

that investors should look into moving forward.

Of course,

you might find a fantastic investment by looking at a different set of stocks.

So take a peek at this

free

list of interesting companies.

This article by Simply Wall St is general in nature. 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.

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