Shareholders Will Probably Not Have Any Issues With Masco Corporation's (NYSE:MAS) CEO Compensation

Key Insights

• Masco will host its Annual General Meeting on 10th of May
• CEO Keith Allman's total compensation includes salary of US$1.27m
• The overall pay is comparable to the industry average
• Masco's EPS grew by 13% over the past three years while total shareholder return over the past three years was 10%

CEO Keith Allman has done a decent job of delivering relatively good performance at Masco Corporation (NYSE:MAS) 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 10th of May. Here is our take on why we think the CEO compensation looks appropriate.

Check out our latest analysis for Masco

Comparing Masco Corporation's CEO Compensation With The Industry

According to our data, Masco Corporation has a market capitalization of US$15b, and paid its CEO total annual compensation worth US$12m over the year to December 2023. We note that's an increase of 99% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.3m.

On comparing similar companies in the American Building industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$10m. So it looks like Masco compensates Keith Allman in line with the median for the industry. What's more, Keith Allman holds US$13m 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$1.3m	US$1.3m	10%
Other	US$11m	US$5.0m	90%
Total Compensation	US$12m	US$6.3m	100%

On an industry level, roughly 15% of total compensation represents salary and 85% is other remuneration. In Masco's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Masco Corporation's Growth

Masco Corporation has seen its earnings per share (EPS) increase by 13% a year over the past three years. In the last year, its revenue is down 6.4%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Masco Corporation Been A Good Investment?

Masco Corporation has generated a total shareholder return of 10% over three years, so most shareholders would be reasonably content. 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...

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. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 2 warning signs for Masco that investors should look into moving forward.

Switching gears from Masco, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.