Nucor Corporation's (NYSE:NUE) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Nucor will host its Annual General Meeting on 9th of May
• Total pay for CEO Leon Topalian includes US$1.50m salary
• Total compensation is 90% above industry average
• Over the past three years, Nucor's EPS grew by 48% and over the past three years, the total shareholder return was 86%

Under the guidance of CEO Leon Topalian, Nucor Corporation (NYSE:NUE) has performed reasonably well recently. 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 9th of May. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for Nucor

How Does Total Compensation For Leon Topalian Compare With Other Companies In The Industry?

According to our data, Nucor Corporation has a market capitalization of US$40b, and paid its CEO total annual compensation worth US$23m over the year to December 2023. That's mostly flat as compared to the prior year's compensation. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.5m.

For comparison, other companies in the American Metals and Mining industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$12m. Accordingly, our analysis reveals that Nucor Corporation pays Leon Topalian north of the industry median. What's more, Leon Topalian holds US$27m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	US$1.5m	US$1.4m	7%
Other	US$21m	US$22m	93%
Total Compensation	US$23m	US$23m	100%

On an industry level, roughly 29% of total compensation represents salary and 71% is other remuneration. In Nucor's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Nucor Corporation's Growth

Nucor Corporation's earnings per share (EPS) grew 48% per year over the last three years. It saw its revenue drop 14% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Nucor Corporation Been A Good Investment?

We think that the total shareholder return of 86%, over three years, would leave most Nucor Corporation shareholders smiling. 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.

To Conclude...

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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

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 Nucor you should be aware of, and 1 of them is concerning.

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.