money Here's What We Think About MYR Group Inc.'s (NASDAQ:MYRG) CEO Pay
Rick Swartz has been the CEO of MYR Group Inc. (NASDAQ:MYRG) since 2017. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for MYR Group
How Does Rick Swartz's Compensation Compare With Similar Sized Companies?
According to our data, MYR Group Inc. has a market capitalization of US$511m, and paid its CEO total annual compensation worth US$2.3m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$591k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO total compensation of that group was US$1.7m.
As you can see, Rick Swartz is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean MYR Group Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at MYR Group has changed from year to year.
Is MYR Group Inc. Growing?
MYR Group Inc. has increased its earnings per share (EPS) by an average of 26% a year, over the last three years (using a line of best fit). Its revenue is up 33% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has MYR Group Inc. Been A Good Investment?
Since shareholders would have lost about 20% over three years, some MYR Group Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We compared the total CEO remuneration paid by MYR Group Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. So you may want to check if insiders are buying MYR Group shares with their own money (free access).
Important note: MYR Group may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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