Key Insights

• Ryerson Holding to hold its Annual General Meeting on 25th of April

• Salary of US$1.15m is part of CEO Eddie Lehner's total remuneration

• The total compensation is 94% higher than the average for the industry

• Over the past three years, Ryerson Holding's EPS grew by 26% and over the past three years, the total shareholder return was 132%

Performance at Ryerson Holding Corporation (NYSE:RYI) has been reasonably good and CEO Eddie Lehner has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 25th of April. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Ryerson Holding

Comparing Ryerson Holding Corporation's CEO Compensation With The Industry

At the time of writing, our data shows that Ryerson Holding Corporation has a market capitalization of US$1.1b, and reported total annual CEO compensation of US$6.5m for the year to December 2023. We note that's a decrease of 27% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.2m.

In comparison with other companies in the American Metals and Mining industry with market capitalizations ranging from US$400m to US$1.6b, the reported median CEO total compensation was US$3.3m. Hence, we can conclude that Eddie Lehner is remunerated higher than the industry median. What's more, Eddie Lehner holds US$19m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 27% of total compensation represents salary, while the remainder of 73% is other remuneration. Ryerson Holding pays a modest slice of remuneration through salary, as compared to the broader 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 Ryerson Holding Corporation's Growth Numbers

Ryerson Holding Corporation's earnings per share (EPS) grew 26% per year over the last three years. In the last year, its revenue is down 19%.

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. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Ryerson Holding Corporation Been A Good Investment?

Most shareholders would probably be pleased with Ryerson Holding Corporation for providing a total return of 132% 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...

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.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 4 warning signs for Ryerson Holding that investors should be aware of in a dynamic business environment.

Important note: Ryerson Holding 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.