Yahoo Finance Shareholders May Not Be So Generous With Martin Marietta Materials, Inc.'s (NYSE:MLM) CEO Compensation And Here's Why
Key Insights
Martin Marietta Materials' Annual General Meeting to take place on 16th of May
Salary of US$1.29m is part of CEO Ward Nye's total remuneration
The total compensation is 259% higher than the average for the industry
Martin Marietta Materials' total shareholder return over the past three years was 64% while its EPS grew by 41% over the past three years
CEO Ward Nye has done a decent job of delivering relatively good performance at Martin Marietta Materials, Inc. (NYSE:MLM) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 16th of May. However, some shareholders may still want to keep CEO compensation within reason.
See our latest analysis for Martin Marietta Materials
Comparing Martin Marietta Materials, Inc.'s CEO Compensation With The Industry
According to our data, Martin Marietta Materials, Inc. has a market capitalization of US$37b, and paid its CEO total annual compensation worth US$18m over the year to December 2023. That's a notable increase of 45% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.3m.
On comparing similar companies in the American Basic Materials industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$5.1m. Hence, we can conclude that Ward Nye is remunerated higher than the industry median. Moreover, Ward Nye also holds US$110m worth of Martin Marietta Materials 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 | 7% |
Other | US$17m | US$11m | 93% |
Total Compensation | US$18m | US$13m | 100% |
On an industry level, roughly 13% of total compensation represents salary and 87% is other remuneration. Martin Marietta Materials 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 Martin Marietta Materials, Inc.'s Growth Numbers
Over the past three years, Martin Marietta Materials, Inc. has seen its earnings per share (EPS) grow by 41% per year. It achieved revenue growth of 6.2% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Martin Marietta Materials, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Martin Marietta Materials, Inc. for providing a total return of 64% 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.
To Conclude...
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.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 3 warning signs (and 1 which doesn't sit too well with us) in Martin Marietta Materials we think you should know about.
Switching gears from Martin Marietta Materials, 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.
