In 2017 Rick Swartz was appointed CEO of MYR Group Inc. (NASDAQ:MYRG). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Rick Swartz's Compensation Compare With Similar Sized Companies?
Our data indicates that MYR Group Inc. is worth US$462m, and total annual CEO compensation is US$2.3m. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$591k. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO total compensation was US$1.8m.
So Rick Swartz is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at MYR Group, below.
Is MYR Group Inc. Growing?
Over the last three years MYR Group Inc. has grown its earnings per share (EPS) by an average of 27% per year (using a line of best fit). In the last year, its revenue is up 23%.
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. Shareholders might be interested in this free visualization of analyst forecasts.
Has MYR Group Inc. Been A Good Investment?
Since shareholders would have lost about 6.0% over three years, some MYR Group Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
Rick Swartz is paid around what is normal the leaders of comparable size companies.
We'd say the company can boast of its EPS growth, but we cannot say the same about the lacklustre shareholder returns (over the last three years). Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. So you may want to check if insiders are buying MYR Group shares with their own money (free access).
Important note: MYR Group 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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If you spot an error that warrants correction, please contact the editor at email@example.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. Thank you for reading.