Here's Why Shareholders May Want To Be Cautious With Increasing Arcosa, Inc.'s (NYSE:ACA) CEO Pay Packet
Key Insights
- Arcosa's Annual General Meeting to take place on 14th of May
- CEO Antonio Carrillo's total compensation includes salary of US$1.00m
- Total compensation is 55% above industry average
- Arcosa's EPS grew by 10% over the past three years while total shareholder return over the past three years was 72%
Under the guidance of CEO Antonio Carrillo, Arcosa, Inc. (NYSE:ACA) 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 14th of May. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
Check out our latest analysis for Arcosa
Comparing Arcosa, Inc.'s CEO Compensation With The Industry
Our data indicates that Arcosa, Inc. has a market capitalization of US$4.1b, and total annual CEO compensation was reported as US$7.3m for the year to December 2024. We note that's an increase of 13% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.0m.
On comparing similar companies from the American Construction industry with market caps ranging from US$2.0b to US$6.4b, we found that the median CEO total compensation was US$4.7m. Accordingly, our analysis reveals that Arcosa, Inc. pays Antonio Carrillo north of the industry median. Moreover, Antonio Carrillo also holds US$37m worth of Arcosa stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$1.0m | US$981k | 14% |
| Other | US$6.3m | US$5.5m | 86% |
| Total Compensation | US$7.3m | US$6.5m | 100% |
Speaking on an industry level, nearly 18% of total compensation represents salary, while the remainder of 82% is other remuneration. Arcosa sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Arcosa, Inc.'s Growth
Over the past three years, Arcosa, Inc. has seen its earnings per share (EPS) grow by 10% per year. Its revenue is up 11% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. 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 Arcosa, Inc. Been A Good Investment?
Boasting a total shareholder return of 72% over three years, Arcosa, Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its 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, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Arcosa that you should be aware of before investing.
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.
Valuation is complex, but we're here to simplify it.
Discover if Arcosa might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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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.