Key Insights

• Vontier's Annual General Meeting to take place on 28th of May
• CEO Mark Morelli's total compensation includes salary of US$1.07m
• The overall pay is comparable to the industry average
• Vontier's EPS grew by 2.5% over the past three years while total shareholder return over the past three years was 16%

Under the guidance of CEO Mark Morelli, Vontier Corporation (NYSE:VNT) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 28th of May. Here is our take on why we think the CEO compensation looks appropriate.

How Does Total Compensation For Mark Morelli Compare With Other Companies In The Industry?

According to our data, Vontier Corporation has a market capitalization of US$6.3b, and paid its CEO total annual compensation worth US$9.3m over the year to December 2023. That's a notable increase of 47% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.1m.

On comparing similar companies from the American Electronic industry with market caps ranging from US$4.0b to US$12b, we found that the median CEO total compensation was US$8.9m. This suggests that Vontier remunerates its CEO largely in line with the industry average. Moreover, Mark Morelli also holds US$11m worth of Vontier 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 31% of total compensation out of all the companies we analyzed, while other remuneration made up 69% of the pie. Vontier sets aside a smaller share of compensation for salary, in comparison to the overall 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 Vontier Corporation's Growth Numbers

Over the past three years, Vontier Corporation has seen its earnings per share (EPS) grow by 2.5% per year. Its revenue is down 4.3% over the previous year.

We generally like to see a little revenue growth, but the modest improvement in EPS is good. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Vontier Corporation Been A Good Investment?

With a total shareholder return of 16% over three years, Vontier Corporation shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Vontier that investors should look into moving forward.

Important note: Vontier 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.