Shareholders Will Probably Hold Off On Increasing Mastercard Incorporated's (NYSE:MA) CEO Compensation For The Time Being

In this article:

Key Insights

  • Mastercard to hold its Annual General Meeting on 18th of June

  • Total pay for CEO Michael Miebach includes US$1.24m salary

  • The total compensation is 114% higher than the average for the industry

  • Over the past three years, Mastercard's EPS grew by 25% and over the past three years, the total shareholder return was 24%

CEO Michael Miebach has done a decent job of delivering relatively good performance at Mastercard Incorporated (NYSE:MA) 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 18th of June. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Mastercard

Comparing Mastercard Incorporated's CEO Compensation With The Industry

According to our data, Mastercard Incorporated has a market capitalization of US$418b, and paid its CEO total annual compensation worth US$26m over the year to December 2023. That's a notable increase of 22% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.2m.

For comparison, other companies in the American Diversified Financial industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$12m. Accordingly, our analysis reveals that Mastercard Incorporated pays Michael Miebach north of the industry median. Moreover, Michael Miebach also holds US$13m worth of Mastercard stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component

2023

2022

Proportion (2023)

Salary

US$1.2m

US$1.1m

5%

Other

US$25m

US$20m

95%

Total Compensation

US$26m

US$21m

100%

Talking in terms of the industry, salary represented approximately 16% of total compensation out of all the companies we analyzed, while other remuneration made up 84% of the pie. Interestingly, the company has chosen to go down an unconventional route in that it pays a smaller salary to Michael Miebach as compared to non-salary compensation over the one-year period examined. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation
NYSE:MA CEO Compensation June 12th 2024

A Look at Mastercard Incorporated's Growth Numbers

Over the past three years, Mastercard Incorporated has seen its earnings per share (EPS) grow by 25% per year. It achieved revenue growth of 13% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.