Shareholders Will Most Likely Find Myers Industries, Inc.'s (NYSE:MYE) CEO Compensation Acceptable

Key Insights

• Myers Industries will host its Annual General Meeting on 25th of April
• CEO Mike McGaugh's total compensation includes salary of US$721.8k
• The total compensation is similar to the average for the industry
• Myers Industries' EPS grew by 8.9% over the past three years while total shareholder return over the past three years was 7.3%

Performance at Myers Industries, Inc. (NYSE:MYE) has been reasonably good and CEO Mike McGaugh 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 25th of April. Here is our take on why we think the CEO compensation looks appropriate.

Check out our latest analysis for Myers Industries

Comparing Myers Industries, Inc.'s CEO Compensation With The Industry

Our data indicates that Myers Industries, Inc. has a market capitalization of US$784m, and total annual CEO compensation was reported as US$3.8m for the year to December 2023. We note that's a small decrease of 3.3% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$722k.

On examining similar-sized companies in the American Packaging industry with market capitalizations between US$400m and US$1.6b, we discovered that the median CEO total compensation of that group was US$3.8m. This suggests that Myers Industries remunerates its CEO largely in line with the industry average. Furthermore, Mike McGaugh directly owns US$5.0m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 13% of total compensation represents salary, while the remainder of 87% is other remuneration. Myers Industries is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Myers Industries, Inc.'s Growth

Myers Industries, Inc. has seen its earnings per share (EPS) increase by 8.9% a year over the past three years. It saw its revenue drop 9.6% over the last year.

We would prefer it if there was revenue growth, but the modest improvement in EPS is good. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Myers Industries, Inc. Been A Good Investment?

Myers Industries, Inc. has generated a total shareholder return of 7.3% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

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. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Myers Industries (free visualization of insider trades).

Switching gears from Myers Industries, 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.