Under the guidance of CEO Ward Nye, Martin Marietta Materials, Inc. (NYSE:MLM) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 13 May 2021. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Martin Marietta Materials

Comparing Martin Marietta Materials, Inc.'s CEO Compensation With the industry

Our data indicates that Martin Marietta Materials, Inc. has a market capitalization of US$23b, and total annual CEO compensation was reported as US$13m for the year to December 2020. That's just a smallish increase of 5.1% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.2m.

In comparison with other companies in the industry with market capitalizations over US$8.0b , the reported median total CEO compensation was US$2.0m. This suggests that Ward Nye is paid more than the median for the industry. Furthermore, Ward Nye directly owns US$63m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 17% of total compensation represents salary and 83% is other remuneration. It's interesting to note that Martin Marietta Materials allocates a smaller portion of compensation to salary 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.

Martin Marietta Materials, Inc.'s Growth

Over the past three years, Martin Marietta Materials, Inc. has seen its earnings per share (EPS) grow by 4.2% per year. In the last year, its revenue changed by just 0.6%.

We would argue that the improvement in revenue is good, but isn't particularly impressive, but we're happy with the modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. 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 Martin Marietta Materials, Inc. Been A Good Investment?

Boasting a total shareholder return of 82% over three years, Martin Marietta Materials, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed 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 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 Martin Marietta Materials that investors should think about before committing capital to this stock.

Switching gears from Martin Marietta Materials, 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.

This article by Simply Wall St is general in nature. 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.

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