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Jeff Lorberbaum has been the CEO of Mohawk Industries, Inc. (NYSE:MHK) since 2001. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. 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. This method should give us information to assess how appropriately the company pays the CEO.
How Does Jeff Lorberbaum's Compensation Compare With Similar Sized Companies?
According to our data, Mohawk Industries, Inc. has a market capitalization of US$11b, and pays its CEO total annual compensation worth US$5.0m. (This is based on the year to December 2017). 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).
A first glance this seems like a real positive for shareholders, since Jeff Lorberbaum is paid less than the average total compensation paid by other large companies. Though positive, it's important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Mohawk Industries has changed over time.
Is Mohawk Industries, Inc. Growing?
Mohawk Industries, Inc. saw earnings per share stay pretty flat over the last three years, albeit with a slight positive trend. In the last year, its revenue is up 3.4%.
I'd prefer higher revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. Shareholders might be interested in this free visualization of analyst forecasts.
Has Mohawk Industries, Inc. Been A Good Investment?
With a three year total loss of 21%, Mohawk Industries, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
Mohawk Industries, Inc. is currently paying its CEO below what is normal for large companies.
Jeff Lorberbaum is paid less than CEOs of other large companies, but growth hasn't been particularly impressive and the total shareholder return over three years would leave many disappointed. Many shareholders would probably like to see improvements, but our analysis does not suggest that CEO compensation is too generous. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Mohawk Industries.
If you want to buy a stock that is better than Mohawk 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 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.