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R. Clyde has been the CEO of Murphy USA Inc. (NYSE:MUSA) since 2013, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Murphy USA.
Comparing Murphy USA Inc.'s CEO Compensation With the industry
Our data indicates that Murphy USA Inc. has a market capitalization of US$3.7b, and total annual CEO compensation was reported as US$7.1m for the year to December 2019. We note that's an increase of 20% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.1m.
On comparing similar companies from the same industry with market caps ranging from US$2.0b to US$6.4b, we found that the median CEO total compensation was US$7.1m. From this we gather that R. Clyde is paid around the median for CEOs in the industry. Furthermore, R. Clyde directly owns US$19m worth of shares in the company, implying that they are deeply invested in the company's success.
Talking in terms of the industry, salary represented approximately 19% of total compensation out of all the companies we analyzed, while other remuneration made up 81% of the pie. It's interesting to note that Murphy USA allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Murphy USA Inc.'s Growth
Over the past three years, Murphy USA Inc. has seen its earnings per share (EPS) grow by 41% per year. In the last year, its revenue is down 17%.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Murphy USA Inc. Been A Good Investment?
Boasting a total shareholder return of 76% over three years, Murphy USA Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
As we noted earlier, Murphy USA pays its CEO in line with similar-sized companies belonging to the same industry. The company is growing EPS and total shareholder returns have been pleasing. Although the pay is close to the industry median, overall performance is excellent, so we don't think the CEO is paid too generously. Stockholders might even be okay with a bump in pay, seeing as how investor returns have been so strong.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 3 warning signs for Murphy USA (1 can't be ignored!) that you should be aware of before investing here.
Switching gears from Murphy USA, 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.
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. 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.
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