Is United States Lime & Minerals Inc (NASDAQ:USLM) Overpaying Its CEO?
Timothy Byrne has been the CEO of United States Lime & Minerals Inc (NASDAQ:USLM) since 2000. 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.
See our latest analysis for United States Lime & Minerals
How Does Timothy Byrne’s Compensation Compare With Similar Sized Companies?
According to our data, United States Lime & Minerals Inc has a market capitalization of US$420m, and pays its CEO total annual compensation worth US$2m. Notably, that’s an increase of 27% over the year before. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO compensation was US$2m.
Thus we can conclude that Timothy Byrne receives more in total compensation than the median of a group of companies in the same market, and of similar size to United States Lime & Minerals Inc. However, this doesn’t necessarily mean the pay is too high. 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 United States Lime & Minerals has changed from year to year.
Is United States Lime & Minerals Inc Growing?
Over the last three years United States Lime & Minerals Inc has grown its earnings per share (EPS) by an average of 27% per year. The trailing twelve months of revenue was pretty much the same as the prior period.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions.
We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has United States Lime & Minerals Inc Been A Good Investment?
Most shareholders would probably be pleased with United States Lime & Minerals Inc for providing a total return of 52% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
We compared total CEO remuneration at United States Lime & Minerals Inc with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Even better, returns to shareholders have been plentiful, over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. So you may want to check if insiders are buying United States Lime & Minerals Inc shares with their own money (free access).
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow 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.
