Stock Analysis

It Looks Like Shareholders Would Probably Approve MYR Group Inc.'s (NASDAQ:MYRG) CEO Compensation Package

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Key Insights

  • MYR Group's Annual General Meeting to take place on 24th of April
  • CEO Rick Swartz's total compensation includes salary of US$870.0k
  • The total compensation is similar to the average for the industry
  • Over the past three years, MYR Group's EPS grew by 16% and over the past three years, the total shareholder return was 130%

We have been pretty impressed with the performance at MYR Group Inc. (NASDAQ:MYRG) recently and CEO Rick Swartz deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 24th of April. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

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$2.7b, and total annual CEO compensation was reported as US$4.6m for the year to December 2023. That's a notable increase of 8.8% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$870k.

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. This suggests that MYR Group remunerates its CEO largely in line with the industry average. Furthermore, Rick Swartz directly owns US$22m worth of shares in the company, implying that they are deeply invested in the company's success.

Component20232022Proportion (2023)
Salary US$870k US$813k 19%
Other US$3.8m US$3.4m 81%
Total CompensationUS$4.6m US$4.2m100%

Speaking on an industry level, nearly 20% of total compensation represents salary, while the remainder of 80% is other remuneration. Our data reveals that MYR Group allocates salary more or less in line with the wider market. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

NasdaqGS:MYRG CEO Compensation April 19th 2024

MYR Group Inc.'s Growth

MYR Group Inc. has seen its earnings per share (EPS) increase by 16% a year over the past three years. It achieved revenue growth of 21% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 MYR Group Inc. Been A Good Investment?

We think that the total shareholder return of 130%, over three years, would leave most MYR Group Inc. shareholders smiling. 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.

In Summary...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at MYR Group.

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.

Valuation is complex, but we're helping make it simple.

Find out whether MYR Group is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.