We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Mueller Industries, Inc.'s (NYSE:MLI) CEO For Now

Key Insights

• Mueller Industries' Annual General Meeting to take place on 9th of May
• Salary of US$1.45m is part of CEO Greg Christopher's total remuneration
• The overall pay is 116% above the industry average
• Mueller Industries' EPS grew by 49% over the past three years while total shareholder return over the past three years was 152%

Under the guidance of CEO Greg Christopher, Mueller Industries, Inc. (NYSE:MLI) has performed reasonably well recently. As shareholders go into the upcoming AGM on 9th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Mueller Industries

How Does Total Compensation For Greg Christopher Compare With Other Companies In The Industry?

At the time of writing, our data shows that Mueller Industries, Inc. has a market capitalization of US$6.4b, and reported total annual CEO compensation of US$19m for the year to December 2023. That's a notable decrease of 44% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.5m.

For comparison, other companies in the American Machinery industry with market capitalizations ranging between US$4.0b and US$12b had a median total CEO compensation of US$9.0m. Hence, we can conclude that Greg Christopher is remunerated higher than the industry median. Moreover, Greg Christopher also holds US$89m worth of Mueller Industries stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	US$1.5m	US$1.5m	7%
Other	US$18m	US$34m	93%
Total Compensation	US$19m	US$35m	100%

On an industry level, around 15% of total compensation represents salary and 85% is other remuneration. Mueller Industries 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.

A Look at Mueller Industries, Inc.'s Growth Numbers

Mueller Industries, Inc. has seen its earnings per share (EPS) increase by 49% a year over the past three years. Its revenue is down 16% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Mueller Industries, Inc. Been A Good Investment?

We think that the total shareholder return of 152%, over three years, would leave most Mueller Industries, Inc. shareholders smiling. 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.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed 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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Mueller Industries 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.

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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.