Key Insights
- Altria Group's Annual General Meeting to take place on 15th of May
- Total pay for CEO Billy Gifford includes US$1.43m salary
- The total compensation is 534% higher than the average for the industry
- Over the past three years, Altria Group's EPS grew by 55% and over the past three years, the total shareholder return was 51%
Performance at Altria Group, Inc. (NYSE:MO) has been reasonably good and CEO Billy Gifford has done a decent job of steering the company in the right direction. 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 15th of May. However, some shareholders may still want to keep CEO compensation within reason.
View our latest analysis for Altria Group
How Does Total Compensation For Billy Gifford Compare With Other Companies In The Industry?
According to our data, Altria Group, Inc. has a market capitalization of US$102b, and paid its CEO total annual compensation worth US$27m over the year to December 2024. Notably, that's an increase of 45% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.4m.
In comparison with other companies in the the US Tobacco industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$4.2m. Accordingly, our analysis reveals that Altria Group, Inc. pays Billy Gifford north of the industry median. Furthermore, Billy Gifford directly owns US$27m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$1.4m | US$1.4m | 5% |
| Other | US$25m | US$17m | 95% |
| Total Compensation | US$27m | US$19m | 100% |
On an industry level, total compensation is equally proportioned between salary and other compensation, that is, they each represent approximately 50% of the total compensation. Altria Group pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Altria Group, Inc.'s Growth Numbers
Over the past three years, Altria Group, Inc. has seen its earnings per share (EPS) grow by 55% per year. It saw its revenue drop 1.0% over the last 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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Altria Group, Inc. Been A Good Investment?
Boasting a total shareholder return of 51% over three years, Altria Group, Inc. has done well by shareholders. 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 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, 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.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 2 warning signs for Altria Group you should be aware of, and 1 of them is a bit unpleasant.
Important note: Altria Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
Valuation is complex, but we're here to simplify it.
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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.