Is Mueller Industries Inc (NYSE:MLI) Overpaying Its CEO?
In 2008 Greg Christopher was appointed CEO of Mueller Industries Inc (NYSE:MLI). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. 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.
Check out our latest analysis for Mueller Industries
How Does Greg Christopher’s Compensation Compare With Similar Sized Companies?
According to our data, Mueller Industries Inc has a market capitalization of US$1.4b, and pays its CEO total annual compensation worth US$4.6m. That’s below the compensation, last year. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO compensation was US$3.6m.
So Greg Christopher receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Mueller Industries, below.
Is Mueller Industries Inc Growing?
Over the last three years Mueller Industries Inc has shrunk its earnings per share by an average of 3.5% per year. In the last year, its revenue is up 12%.
Sadly for shareholders, earnings per share are actually down, over three years. And while it’s good to see some good revenue growth recently, the growth isn’t really fast enough for me to put aside my concerns around earnings. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Mueller Industries Inc Been A Good Investment?
With a three year total loss of 13%, Mueller Industries Inc would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
Greg Christopher is paid around what is normal the leaders of comparable size companies.
The company isn’t growing EPS, and shareholder returns have been disappointing. Suffice it to say, we don’t think the CEO is underpaid!
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
