Yahoo Finance Shareholders Will Most Likely Find Masco Corporation's (NYSE:MAS) CEO Compensation Acceptable
Key Insights
Masco will host its Annual General Meeting on 10th of May
Salary of US$1.27m is part of CEO Keith Allman's total remuneration
The total compensation is similar to the average for the industry
Over the past three years, Masco's EPS grew by 13% and over the past three years, the total shareholder return was 10%
Under the guidance of CEO Keith Allman, Masco Corporation (NYSE:MAS) has performed reasonably well 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 10th of May. We present our case of why we think CEO compensation looks fair.
See our latest analysis for Masco
How Does Total Compensation For Keith Allman Compare With Other Companies In The Industry?
According to our data, Masco Corporation has a market capitalization of US$15b, and paid its CEO total annual compensation worth US$12m over the year to December 2023. That's a notable increase of 99% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.3m.
In comparison with other companies in the American Building industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$10m. From this we gather that Keith Allman is paid around the median for CEOs in the industry. Moreover, Keith Allman also holds US$13m worth of Masco 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$1.3m | US$1.3m | 10% |
Other | US$11m | US$5.0m | 90% |
Total Compensation | US$12m | US$6.3m | 100% |
Speaking on an industry level, nearly 15% of total compensation represents salary, while the remainder of 85% is other remuneration. Masco pays a modest slice of remuneration through salary, as compared to the broader 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 Masco Corporation's Growth Numbers
Over the past three years, Masco Corporation has seen its earnings per share (EPS) grow by 13% per year. It saw its revenue drop 6.4% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. 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 Masco Corporation Been A Good Investment?
Masco Corporation has served shareholders reasonably well, with a total return of 10% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay 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.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 2 warning signs for Masco that investors should look into moving forward.
Switching gears from Masco, 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.
