Yahoo Finance Increases to Nucor Corporation's (NYSE:NUE) CEO Compensation Might Cool off for now
Key Insights
Nucor to hold its Annual General Meeting on 9th of May
Total pay for CEO Leon Topalian includes US$1.50m salary
The overall pay is 90% above the industry average
Over the past three years, Nucor's EPS grew by 48% and over the past three years, the total shareholder return was 86%
Under the guidance of CEO Leon Topalian, Nucor Corporation (NYSE:NUE) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 9th of May. However, some shareholders will still be cautious of paying the CEO excessively.
Check out our latest analysis for Nucor
How Does Total Compensation For Leon Topalian Compare With Other Companies In The Industry?
According to our data, Nucor Corporation has a market capitalization of US$40b, and paid its CEO total annual compensation worth US$23m over the year to December 2023. This means that the compensation hasn't changed much from last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.5m.
In comparison with other companies in the American Metals and Mining industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$12m. This suggests that Leon Topalian is paid more than the median for the industry. What's more, Leon Topalian holds US$27m 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$1.5m | US$1.4m | 7% |
Other | US$21m | US$22m | 93% |
Total Compensation | US$23m | US$23m | 100% |
Speaking on an industry level, nearly 29% of total compensation represents salary, while the remainder of 71% is other remuneration. In Nucor's case, non-salary compensation represents a greater slice of total remuneration, in comparison 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.
Nucor Corporation's Growth
Nucor Corporation's earnings per share (EPS) grew 48% per year over the last three years. Its revenue is down 14% over the previous year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. 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 Nucor Corporation Been A Good Investment?
We think that the total shareholder return of 86%, over three years, would leave most Nucor Corporation shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 2 warning signs for Nucor (of which 1 is a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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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.
