Yahoo Finance Shareholders Will Probably Hold Off On Increasing Altria Group, Inc.'s (NYSE:MO) CEO Compensation For The Time Being
Key Insights
Altria Group will host its Annual General Meeting on 16th of May
CEO Billy Gifford's total compensation includes salary of US$1.35m
Total compensation is 222% above industry average
Altria Group's total shareholder return over the past three years was 14% while its EPS grew by 28% over the past three years
Performance at Altria Group, Inc. (NYSE:MO) has been reasonably good and CEO Billy Gifford 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 16th of May. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
View our latest analysis for Altria Group
How Does Total Compensation For Billy Gifford Compare With Other Companies In The Industry?
According to our data, Altria Group, Inc. has a market capitalization of US$76b, and paid its CEO total annual compensation worth US$19m over the year to December 2023. That's a notable increase of 14% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.4m.
On comparing similar companies in the the US Tobacco industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$5.7m. This suggests that Billy Gifford is paid more than the median for the industry. Moreover, Billy Gifford also holds US$15m worth of Altria Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$1.4m | US$1.3m | 7% |
Other | US$17m | US$15m | 93% |
Total Compensation | US$19m | US$16m | 100% |
Talking in terms of the industry, salary represented approximately 71% of total compensation out of all the companies we analyzed, while other remuneration made up 29% of the pie. Altria Group 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 Altria Group, Inc.'s Growth Numbers
Altria Group, Inc. has seen its earnings per share (EPS) increase by 28% a year over the past three years. In the last year, its revenue is up 11%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Altria Group, Inc. Been A Good Investment?
With a total shareholder return of 14% over three years, Altria Group, Inc. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO 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. 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 CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Altria Group that investors should look into moving forward.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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.
