Yahoo Finance Key Things To Understand About WiseTech Global's (ASX:WTC) CEO Pay Cheque
Richard White has been the CEO of WiseTech Global Limited (ASX:WTC) since 1994, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for WiseTech Global.
Check out our latest analysis for WiseTech Global
Comparing WiseTech Global Limited's CEO Compensation With the industry
At the time of writing, our data shows that WiseTech Global Limited has a market capitalization of AU$9.1b, and reported total annual CEO compensation of AU$1.2m for the year to June 2020. That's just a smallish increase of 5.2% on last year. In particular, the salary of AU$979.0k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the same industry with market capitalizations ranging between AU$5.6b and AU$17b had a median total CEO compensation of AU$7.6m. That is to say, Richard White is paid under the industry median. Moreover, Richard White also holds AU$295m worth of WiseTech Global stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2020 | 2019 | Proportion (2020) |
Salary | AU$979k | AU$975k | 79% |
Other | AU$267k | AU$209k | 21% |
Total Compensation | AU$1.2m | AU$1.2m | 100% |
On an industry level, around 60% of total compensation represents salary and 40% is other remuneration. WiseTech Global is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at WiseTech Global Limited's Growth Numbers
Over the past three years, WiseTech Global Limited has seen its earnings per share (EPS) grow by 67% per year. Its revenue is up 23% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing 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 WiseTech Global Limited Been A Good Investment?
Most shareholders would probably be pleased with WiseTech Global Limited for providing a total return of 166% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
As we noted earlier, WiseTech Global pays its CEO lower than the norm for similar-sized companies belonging to the same industry. Considering robust EPS growth, we believe Richard to be modestly paid. And given most shareholders are probably very happy with recent shareholder returns, they might even think Richard deserves a raise!
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 3 warning signs for WiseTech Global that investors should think about before committing capital to this stock.
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.
This article by Simply Wall St is general in nature. 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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