Key Insights

• Mueller Industries to hold its Annual General Meeting on 9th of May
• Salary of US$1.45m is part of CEO Greg Christopher's total remuneration
• The total compensation is 116% higher than the average for the industry
• Mueller Industries' EPS grew by 49% over the past three years while total shareholder return over the past three years was 152%

Performance at Mueller Industries, Inc. (NYSE:MLI) has been reasonably good and CEO Greg Christopher has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 9th of May. However, some shareholders will still be cautious of paying the CEO excessively.

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

At the time of writing, our data shows that Mueller Industries, Inc. has a market capitalization of US$6.4b, and reported total annual CEO compensation of US$19m for the year to December 2023. We note that's a decrease of 44% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.5m.

On comparing similar companies from the American Machinery industry with market caps ranging from US$4.0b to US$12b, we found that the median CEO total compensation was US$9.0m. Hence, we can conclude that Greg Christopher is remunerated higher than the industry median. Moreover, Greg Christopher also holds US$89m worth of Mueller Industries stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 15% of total compensation represents salary, while the remainder of 85% is other remuneration. Mueller Industries sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Mueller Industries, Inc.'s Growth Numbers

Mueller Industries, Inc.'s earnings per share (EPS) grew 49% per year over the last three years. Its revenue is down 16% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Mueller Industries, Inc. Been A Good Investment?

We think that the total shareholder return of 152%, over three years, would leave most Mueller Industries, Inc. shareholders smiling. 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. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Mueller Industries that you should be aware of before investing.

Important note: Mueller Industries is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.