Key Insights

• Matson's Annual General Meeting to take place on 25th of April
• Total pay for CEO Matt Cox includes US$904.2k salary
• The overall pay is 148% above the industry average
• Matson's EPS grew by 24% over the past three years while total shareholder return over the past three years was 62%

CEO Matt Cox has done a decent job of delivering relatively good performance at Matson, Inc. (NYSE:MATX) recently. As shareholders go into the upcoming AGM on 25th of April, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

How Does Total Compensation For Matt Cox Compare With Other Companies In The Industry?

Our data indicates that Matson, Inc. has a market capitalization of US$3.6b, and total annual CEO compensation was reported as US$6.2m for the year to December 2023. That's mostly flat as compared to the prior year's compensation. We think total compensation is more important but our data shows that the CEO salary is lower, at US$904k.

In comparison with other companies in the American Shipping industry with market capitalizations ranging from US$2.0b to US$6.4b, the reported median CEO total compensation was US$2.5m. Accordingly, our analysis reveals that Matson, Inc. pays Matt Cox north of the industry median. Moreover, Matt Cox also holds US$22m worth of Matson 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. There isn't a significant difference between Matson and the broader market, in terms of salary allocation in the overall compensation package. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Matson, Inc.'s Growth

Matson, Inc.'s earnings per share (EPS) grew 24% per year over the last three years. Its revenue is down 29% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Matson, Inc. Been A Good Investment?

We think that the total shareholder return of 62%, over three years, would leave most Matson, Inc. 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...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus 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 pay is simply one of the many factors that need to be considered while examining business performance. We identified 3 warning signs for Matson (1 doesn't sit too well with us!) that you should be aware of before investing here.

Switching gears from Matson, 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.