J. Hall has been the CEO of Mueller Water Products, Inc. (NYSE:MWA) since 2017. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does J. Hall’s Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Mueller Water Products, Inc. has a market cap of US$1.9b, and reported total annual CEO compensation of US$3.0m for the year to September 2019. That’s below the compensation, last year. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$788k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO total compensation was US$3.9m.
So J. Hall is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Mueller Water Products, below.
Is Mueller Water Products, Inc. Growing?
On average over the last three years, Mueller Water Products, Inc. has grown earnings per share (EPS) by 5.8% each year (using a line of best fit). Its revenue is up 6.2% over last year.
I’m not particularly impressed by the revenue growth, but I’m happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise. It could be important to check this free visual depiction of what analysts expect for the future.
Has Mueller Water Products, Inc. Been A Good Investment?
With a three year total loss of 0.5%, Mueller Water Products, Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
J. Hall is paid around the same as most CEOs of similar size companies.
We would like to see somewhat stronger per share growth. And we think the shareholder returns – over three years – have been underwhelming. So suffice it to say we don’t think the compensation is modest. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Mueller Water Products (free visualization of insider trades).
Important note: Mueller Water Products may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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