Here's Why Shareholders Will Not Be Complaining About Murphy USA Inc.'s (NYSE:MUSA) CEO Pay Packet

Key Insights

• Murphy USA to hold its Annual General Meeting on 9th of May
• CEO R. Clyde's total compensation includes salary of US$1.27m
• The total compensation is similar to the average for the industry
• Over the past three years, Murphy USA's EPS grew by 26% and over the past three years, the total shareholder return was 194%

It would be hard to discount the role that CEO R. Clyde has played in delivering the impressive results at Murphy USA Inc. (NYSE:MUSA) recently. Coming up to the next AGM on 9th of May, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

View our latest analysis for Murphy USA

Comparing Murphy USA Inc.'s CEO Compensation With The Industry

Our data indicates that Murphy USA Inc. has a market capitalization of US$8.5b, and total annual CEO compensation was reported as US$11m for the year to December 2023. This means that the compensation hasn't changed much from last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.3m.

On comparing similar companies from the American Specialty Retail industry with market caps ranging from US$4.0b to US$12b, we found that the median CEO total compensation was US$11m. So it looks like Murphy USA compensates R. Clyde in line with the median for the industry. Furthermore, R. Clyde directly owns US$80m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	US$1.3m	US$1.2m	12%
Other	US$9.3m	US$9.1m	88%
Total Compensation	US$11m	US$10m	100%

On an industry level, roughly 17% of total compensation represents salary and 83% is other remuneration. It's interesting to note that Murphy USA allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Murphy USA Inc.'s Growth

Over the past three years, Murphy USA Inc. has seen its earnings per share (EPS) grow by 26% per year. It saw its revenue drop 10% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Murphy USA Inc. Been A Good Investment?

Most shareholders would probably be pleased with Murphy USA Inc. for providing a total return of 194% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Murphy USA that you should be aware of before investing.

Switching gears from Murphy USA, 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.