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Is Myers Industries, Inc. (NYSE:MYE) Overpaying Its CEO?

In 2015 Dave Banyard was appointed CEO of Myers Industries, Inc. (NYSE:MYE). 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Myers Industries

How Does Dave Banyard's Compensation Compare With Similar Sized Companies?

Our data indicates that Myers Industries, Inc. is worth US$570m, and total annual CEO compensation is US$4.1m. (This figure is for the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$719k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO total compensation of that group was US$1.8m.

As you can see, Dave Banyard is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Myers Industries, Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

The graphic below shows how CEO compensation at Myers Industries has changed from year to year.

NYSE:MYE CEO Compensation, August 2nd 2019
NYSE:MYE CEO Compensation, August 2nd 2019

Is Myers Industries, Inc. Growing?

Myers Industries, Inc. has reduced its earnings per share by an average of 40% a year, over the last three years (measured with a line of best fit). It saw its revenue drop -3.8% over the last year.

Unfortunately, earnings per share have trended lower over the last three years. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Shareholders might be interested in this free visualization of analyst forecasts.

Has Myers Industries, Inc. Been A Good Investment?

With a total shareholder return of 30% over three years, Myers Industries, Inc. shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

We compared the total CEO remuneration paid by Myers Industries, Inc., and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

We think many shareholders would be underwhelmed with the business growth over the last three years.

And while shareholder returns have been respectable, they have hardly been superb. So we think more research is needed, but we don't think the CEO underpaid. Whatever your view on compensation, you might want to check if insiders are buying or selling Myers Industries shares (free trial).

If you want to buy a stock that is better than Myers Industries, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.

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