Yahoo Finance The Williams Companies, Inc.'s (NYSE:WMB) CEO Will Probably Have Their Compensation Approved By Shareholders
Key Insights
Williams Companies will host its Annual General Meeting on 30th of April
CEO Murray Armstrong's total compensation includes salary of US$1.39m
The overall pay is comparable to the industry average
Over the past three years, Williams Companies' EPS grew by 150% and over the past three years, the total shareholder return was 89%
It would be hard to discount the role that CEO Murray Armstrong has played in delivering the impressive results at The Williams Companies, Inc. (NYSE:WMB) recently. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 30th of April. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.
Check out our latest analysis for Williams Companies
How Does Total Compensation For Murray Armstrong Compare With Other Companies In The Industry?
Our data indicates that The Williams Companies, Inc. has a market capitalization of US$47b, and total annual CEO compensation was reported as US$18m for the year to December 2023. Notably, that's an increase of 26% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.4m.
In comparison with other companies in the American Oil and Gas industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$15m. This suggests that Williams Companies remunerates its CEO largely in line with the industry average. What's more, Murray Armstrong holds US$95m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$1.4m | US$1.3m | 8% |
Other | US$16m | US$13m | 92% |
Total Compensation | US$18m | US$14m | 100% |
Speaking on an industry level, nearly 13% of total compensation represents salary, while the remainder of 87% is other remuneration. Williams Companies pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
The Williams Companies, Inc.'s Growth
The Williams Companies, Inc.'s earnings per share (EPS) grew 150% per year over the last three years. In the last year, its revenue is down 12%.
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. 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 The Williams Companies, Inc. Been A Good Investment?
Most shareholders would probably be pleased with The Williams Companies, Inc. for providing a total return of 89% over three years. 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...
Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 2 warning signs for Williams Companies (1 is concerning!) that you should be aware of before investing here.
Important note: Williams Companies 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.
