Key Insights

• Orion's Annual General Meeting to take place on 20th of June
• Salary of US$1.05m is part of CEO Corning Painter's total remuneration
• The overall pay is 44% above the industry average
• Orion's total shareholder return over the past three years was 24% while its EPS grew by 57% over the past three years

CEO Corning Painter has done a decent job of delivering relatively good performance at Orion S.A. (NYSE:OEC) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 20th of June. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Comparing Orion S.A.'s CEO Compensation With The Industry

According to our data, Orion S.A. has a market capitalization of US$1.4b, and paid its CEO total annual compensation worth US$7.6m over the year to December 2023. Notably, that's an increase of 62% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.0m.

In comparison with other companies in the American Chemicals industry with market capitalizations ranging from US$1.0b to US$3.2b, the reported median CEO total compensation was US$5.3m. This suggests that Corning Painter is paid more than the median for the industry. What's more, Corning Painter holds US$18m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 19% of total compensation represents salary and 81% is other remuneration. Orion pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Orion S.A.'s Growth

Orion S.A. has seen its earnings per share (EPS) increase by 57% a year over the past three years. Its revenue is down 7.4% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. 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 Orion S.A. Been A Good Investment?

With a total shareholder return of 24% over three years, Orion S.A. 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...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Orion that you should be aware of before investing.

Switching gears from Orion, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com