José Mas became the CEO of MasTec, Inc. (NYSE:MTZ) in 2007. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does José Mas's Compensation Compare With Similar Sized Companies?
According to our data, MasTec, Inc. has a market capitalization of US$4.7b, and pays its CEO total annual compensation worth US$7.3m. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.1m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$5.1m.
As you can see, José Mas is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean MasTec, Inc. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at MasTec has changed over time.
Is MasTec, Inc. Growing?
MasTec, Inc. has increased its earnings per share (EPS) by an average of 48% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 12%.
This demonstrates that the company has been improving recently. A good result. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. You might want to check this free visual report on analyst forecasts for future earnings.
Has MasTec, Inc. Been A Good Investment?
Most shareholders would probably be pleased with MasTec, Inc. for providing a total return of 109% 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.
We compared total CEO remuneration at MasTec, Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. In addition, shareholders have done well over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at MasTec.
Important note: MasTec may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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