Yahoo Finance Hayward Holdings, Inc.'s (NYSE:HAYW) CEO Will Probably Find It Hard To See A Huge Raise This Year
Key Insights
Hayward Holdings' Annual General Meeting to take place on 30th of May
CEO Kevin Holleran's total compensation includes salary of US$923.1k
Total compensation is similar to the industry average
Hayward Holdings' EPS grew by 64% over the past three years while total shareholder loss over the past three years was 43%
Shareholders of Hayward Holdings, Inc. (NYSE:HAYW) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 30th of May. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.
See our latest analysis for Hayward Holdings
How Does Total Compensation For Kevin Holleran Compare With Other Companies In The Industry?
According to our data, Hayward Holdings, Inc. has a market capitalization of US$3.1b, and paid its CEO total annual compensation worth US$5.6m over the year to December 2023. That is, the compensation was roughly the same as last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$923k.
For comparison, other companies in the American Building industry with market capitalizations ranging between US$2.0b and US$6.4b had a median total CEO compensation of US$5.6m. From this we gather that Kevin Holleran is paid around the median for CEOs in the industry. Moreover, Kevin Holleran also holds US$4.5m worth of Hayward Holdings 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$923k | US$875k | 16% |
Other | US$4.7m | US$4.7m | 84% |
Total Compensation | US$5.6m | US$5.6m | 100% |
On an industry level, around 16% of total compensation represents salary and 84% is other remuneration. Hayward Holdings is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Hayward Holdings, Inc.'s Growth
Hayward Holdings, Inc.'s earnings per share (EPS) grew 64% per year over the last three years. In the last year, its revenue is down 11%.
Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Hayward Holdings, Inc. Been A Good Investment?
With a total shareholder return of -43% over three years, Hayward Holdings, Inc. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would be keen to know what's holding the stock back when earnings have grown. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Hayward Holdings 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.
