Key Insights

• Arcosa will host its Annual General Meeting on 8th of May
• Salary of US$980.5k is part of CEO Antonio Carrillo's total remuneration
• The overall pay is comparable to the industry average
• Over the past three years, Arcosa's EPS grew by 14% and over the past three years, the total shareholder return was 20%

CEO Antonio Carrillo has done a decent job of delivering relatively good performance at Arcosa, Inc. (NYSE:ACA) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 8th of May. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

How Does Total Compensation For Antonio Carrillo Compare With Other Companies In The Industry?

Our data indicates that Arcosa, Inc. has a market capitalization of US$3.7b, and total annual CEO compensation was reported as US$6.5m 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$981k.

On comparing similar companies from the American Construction industry with market caps ranging from US$2.0b to US$6.4b, we found that the median CEO total compensation was US$5.3m. This suggests that Arcosa remunerates its CEO largely in line with the industry average. Moreover, Antonio Carrillo also holds US$28m worth of Arcosa stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 22% of total compensation represents salary and 78% is other remuneration. Arcosa sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Arcosa, Inc.'s Growth Numbers

Arcosa, Inc. has seen its earnings per share (EPS) increase by 14% a year over the past three years. It achieved revenue growth of 2.9% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Arcosa, Inc. Been A Good Investment?

Arcosa, Inc. has generated a total shareholder return of 20% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this 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, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Arcosa that you should be aware of before investing.

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.