Yahoo Finance Here's Why We Think Arcosa, Inc.'s (NYSE:ACA) CEO Compensation Looks Fair for the time being
Key Insights
Arcosa to hold its Annual General Meeting on 8th of May
CEO Antonio Carrillo's total compensation includes salary of US$980.5k
The total compensation is similar to the average for the industry
Arcosa's EPS grew by 14% over the past three years while total shareholder return over the past three years was 20%
Performance at Arcosa, Inc. (NYSE:ACA) has been reasonably good and CEO Antonio Carrillo has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 8th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
View our latest analysis for Arcosa
How Does Total Compensation For Antonio Carrillo Compare With Other Companies In The Industry?
At the time of writing, our data shows that Arcosa, Inc. has a market capitalization of US$3.7b, and reported total annual CEO compensation of US$6.5m for the year to December 2023. That is, the compensation was roughly the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$981k.
For comparison, other companies in the American Construction industry with market capitalizations ranging between US$2.0b and US$6.4b had a median total CEO compensation of US$5.3m. So it looks like Arcosa compensates Antonio Carrillo in line with the median for the industry. What's more, Antonio Carrillo holds US$28m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$981k | US$925k | 15% |
Other | US$5.5m | US$5.4m | 85% |
Total Compensation | US$6.5m | US$6.3m | 100% |
On an industry level, roughly 22% of total compensation represents salary and 78% is other remuneration. Arcosa pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Arcosa, Inc.'s Growth Numbers
Arcosa, Inc. has seen its earnings per share (EPS) increase by 14% a year over the past three years. Its revenue is up 2.9% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Arcosa, Inc. Been A Good Investment?
With a total shareholder return of 20% over three years, Arcosa, 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...
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 2 warning signs for Arcosa that investors should be aware of in a dynamic business environment.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
