Here's Why It's Unlikely That Wagners Holding Company Limited's (ASX:WGN) CEO Will See A Pay Rise This Year

The results at Wagners Holding Company Limited (ASX:WGN) have been quite disappointing recently and CEO Cameron Coleman bears some responsibility for this. At the upcoming AGM on 26 October 2022, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. The data we present below explains why we think CEO compensation is not consistent with recent performance.

View our latest analysis for Wagners Holding

Comparing Wagners Holding Company Limited's CEO Compensation With The Industry

According to our data, Wagners Holding Company Limited has a market capitalization of AU$148m, and paid its CEO total annual compensation worth AU$802k over the year to June 2022. That's mostly flat as compared to the prior year's compensation. We note that the salary portion, which stands at AU$551.1k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below AU$318m, reported a median total CEO compensation of AU$162k. This suggests that Cameron Coleman is paid more than the median for the industry. Moreover, Cameron Coleman also holds AU$132k worth of Wagners Holding stock directly under their own name.

Component	2022	2021	Proportion (2022)
Salary	AU$551k	AU$538k	69%
Other	AU$251k	AU$283k	31%
Total Compensation	AU$802k	AU$821k	100%

Speaking on an industry level, nearly 56% of total compensation represents salary, while the remainder of 44% is other remuneration. Wagners Holding is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

ceo-compensation

Wagners Holding Company Limited's Growth

Over the last three years, Wagners Holding Company Limited has shrunk its earnings per share by 20% per year. In the last year, its revenue is up 5.1%.

Overall this is not a very positive result for shareholders. The fairly low revenue growth fails to impress given that the EPS is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Wagners Holding Company Limited Been A Good Investment?

The return of -55% over three years would not have pleased Wagners Holding Company Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

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. That's why we did our research, and identified 2 warning signs for Wagners Holding (of which 1 is potentially serious!) that you should know about in order to have a holistic understanding of the stock.

Important note: Wagners 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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