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Keith Allman has been the CEO of Masco Corporation (NYSE:MAS) since 2014. First, this article will compare CEO compensation with compensation at other large companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Keith Allman's Compensation Compare With Similar Sized Companies?
According to our data, Masco Corporation has a market capitalization of US$11b, and pays its CEO total annual compensation worth US$12m. (This number is for the twelve months until December 2018). That's just a smallish increase of 1.1% on last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.2m. We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO total compensation to be US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
So Keith Allman receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Masco has changed over time.
Is Masco Corporation Growing?
Over the last three years Masco Corporation has grown its earnings per share (EPS) by an average of 20% per year (using a line of best fit). It achieved revenue growth of 7.2% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 25% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
Keith Allman is paid around the same as most CEOs of large companies.
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. As a result of these considerations, I would suggest the CEO pay is reasonable. So you may want to check if insiders are buying Masco shares with their own money (free access).
If you want to buy a stock that is better than Masco, this free list of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.