Yahoo Finance We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Mueller Industries, Inc.'s (NYSE:MLI) CEO For Now
Key Insights
Mueller Industries will host its Annual General Meeting on 9th of May
CEO Greg Christopher's total compensation includes salary of US$1.45m
Total compensation is 116% above industry average
Mueller Industries' total shareholder return over the past three years was 152% while its EPS grew by 49% over the past three years
Performance at Mueller Industries, Inc. (NYSE:MLI) has been reasonably good and CEO Greg Christopher has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 9th of May. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
See our latest analysis for Mueller Industries
How Does Total Compensation For Greg Christopher Compare With Other Companies In The Industry?
At the time of writing, our data shows that Mueller Industries, Inc. has a market capitalization of US$6.4b, and reported total annual CEO compensation of US$19m for the year to December 2023. We note that's a decrease of 44% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.5m.
For comparison, other companies in the American Machinery industry with market capitalizations ranging between US$4.0b and US$12b had a median total CEO compensation of US$9.0m. Hence, we can conclude that Greg Christopher is remunerated higher than the industry median. Moreover, Greg Christopher also holds US$89m worth of Mueller Industries 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$1.5m | US$1.5m | 7% |
Other | US$18m | US$34m | 93% |
Total Compensation | US$19m | US$35m | 100% |
On an industry level, around 15% of total compensation represents salary and 85% is other remuneration. Mueller Industries 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.
A Look at Mueller Industries, Inc.'s Growth Numbers
Mueller Industries, Inc.'s earnings per share (EPS) grew 49% per year over the last three years. Its revenue is down 16% over the previous year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Mueller Industries, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Mueller Industries, Inc. for providing a total return of 152% over three years. So they may not be at all concerned if the CEO were to be 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. 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 can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Mueller Industries that investors should think about before committing capital to this stock.
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.
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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.
