Yahoo Finance How Much is Mohawk Industries, Inc.'s (NYSE:MHK) CEO Getting Paid?
In 2001 Jeff Lorberbaum was appointed CEO of Mohawk Industries, Inc. (NYSE:MHK). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Mohawk Industries
How Does Jeff Lorberbaum's Compensation Compare With Similar Sized Companies?
Our data indicates that Mohawk Industries, Inc. is worth US$9.4b, and total annual CEO compensation was reported as US$4.6m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$1.2m. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$4.0b to US$12b. The median total CEO compensation was US$6.5m.
That means Jeff Lorberbaum receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Mohawk Industries has changed from year to year.
Is Mohawk Industries, Inc. Growing?
Over the last three years Mohawk Industries, Inc. has shrunk its earnings per share by an average of 7.6% per year (measured with a line of best fit). Revenue was pretty flat on last year.
Unfortunately, earnings per share have trended lower over the last three years. And the flat revenue is seriously uninspiring. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Mohawk Industries, Inc. Been A Good Investment?
Given the total loss of 36% over three years, many shareholders in Mohawk Industries, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Jeff Lorberbaum is paid around the same as most CEOs of similar size companies.
After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. Shareholders may want to check for free if Mohawk Industries insiders are buying or selling shares.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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