Yahoo Finance How Much is Martin Marietta Materials, Inc.'s (NYSE:MLM) CEO Getting Paid?
Ward Nye became the CEO of Martin Marietta Materials, Inc. (NYSE:MLM) in 2010. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Martin Marietta Materials
How Does Ward Nye's Compensation Compare With Similar Sized Companies?
According to our data, Martin Marietta Materials, Inc. has a market capitalization of US$16b, and paid its CEO total annual compensation worth US$8.5m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.1m. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was 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).
So Ward Nye is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Martin Marietta Materials has changed from year to year.
Is Martin Marietta Materials, Inc. Growing?
Martin Marietta Materials, Inc. has increased its earnings per share (EPS) by an average of 11% a year, over the last three years (using a line of best fit). It achieved revenue growth of 11% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Martin Marietta Materials, Inc. Been A Good Investment?
Martin Marietta Materials, Inc. has served shareholders reasonably well, with a total return of 19% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
Ward Nye is paid around what is normal the leaders of larger companies.
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. So upon reflection one could argue that the CEO pay is quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Martin Marietta Materials.
Important note: Martin Marietta Materials may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
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