Eagle Materials Inc.'s (NYSE:EXP) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Eagle Materials to hold its Annual General Meeting on 1st of August
• CEO Michael Haack's total compensation includes salary of US$1.04m
• The overall pay is 209% above the industry average
• Eagle Materials' EPS grew by 21% over the past three years while total shareholder return over the past three years was 68%

CEO Michael Haack has done a decent job of delivering relatively good performance at Eagle Materials Inc. (NYSE:EXP) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 1st of August. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Eagle Materials

Comparing Eagle Materials Inc.'s CEO Compensation With The Industry

Our data indicates that Eagle Materials Inc. has a market capitalization of US$7.7b, and total annual CEO compensation was reported as US$8.1m for the year to March 2024. That's a fairly small increase of 5.8% over the previous year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.0m.

On comparing similar companies from the American Basic Materials industry with market caps ranging from US$4.0b to US$12b, we found that the median CEO total compensation was US$2.6m. Hence, we can conclude that Michael Haack is remunerated higher than the industry median. What's more, Michael Haack holds US$20m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	US$1.0m	US$1.0m	13%
Other	US$7.0m	US$6.6m	87%
Total Compensation	US$8.1m	US$7.6m	100%

On an industry level, roughly 13% of total compensation represents salary and 87% is other remuneration. There isn't a significant difference between Eagle Materials and the broader market, in terms of salary allocation in the overall compensation package. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Eagle Materials Inc.'s Growth Numbers

Over the past three years, Eagle Materials Inc. has seen its earnings per share (EPS) grow by 21% per year. In the last year, its revenue is up 5.2%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Eagle Materials Inc. Been A Good Investment?

We think that the total shareholder return of 68%, over three years, would leave most Eagle Materials Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay 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. We did our research and spotted 1 warning sign for Eagle Materials that investors should look into moving forward.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com