Increases to CEO Compensation Might Be Put On Hold For Now at MYR Group Inc. (NASDAQ:MYRG)

Under the guidance of CEO Rick Swartz, MYR Group Inc. (NASDAQ:MYRG) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 22 April 2021. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for MYR Group

How Does Total Compensation For Rick Swartz Compare With Other Companies In The Industry?

Our data indicates that MYR Group Inc. has a market capitalization of US$1.2b, and total annual CEO compensation was reported as US$3.3m for the year to December 2020. Notably, that's an increase of 21% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$717k.

In comparison with other companies in the industry with market capitalizations ranging from US$400m to US$1.6b, the reported median CEO total compensation was US$1.8m. Hence, we can conclude that Rick Swartz is remunerated higher than the industry median. Furthermore, Rick Swartz directly owns US$8.4m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2020	2019	Proportion (2020)
Salary	US$717k	US$681k	22%
Other	US$2.6m	US$2.0m	78%
Total Compensation	US$3.3m	US$2.7m	100%

Talking in terms of the industry, salary represented approximately 22% of total compensation out of all the companies we analyzed, while other remuneration made up 78% of the pie. Our data reveals that MYR Group allocates salary more or less in line with the wider market. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at MYR Group Inc.'s Growth Numbers

MYR Group Inc.'s earnings per share (EPS) grew 39% per year over the last three years. Its revenue is up 8.5% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has MYR Group Inc. Been A Good Investment?

Boasting a total shareholder return of 126% over three years, MYR Group Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for MYR Group that investors should look into moving forward.

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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