Key Things To Understand About Wingara's (ASX:WNR) CEO Pay Cheque

The CEO of Wingara AG Limited (ASX:WNR) is Gavin Xing, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Wingara.

See our latest analysis for Wingara

Comparing Wingara AG Limited's CEO Compensation With the industry

Our data indicates that Wingara AG Limited has a market capitalization of AU$28m, and total annual CEO compensation was reported as AU$398k for the year to March 2020. Notably, that's an increase of 27% over the year before. In particular, the salary of AU$266.5k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the industry with market capitalizations below AU$279m, we found that the median total CEO compensation was AU$468k. From this we gather that Gavin Xing is paid around the median for CEOs in the industry. Furthermore, Gavin Xing directly owns AU$2.7m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 57% of total compensation represents salary and 43% is other remuneration. According to our research, Wingara has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Wingara AG Limited's Growth

Wingara AG Limited has seen its earnings per share (EPS) increase by 58% a year over the past three years. In the last year, its revenue is up 20%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Wingara AG Limited Been A Good Investment?

Given the total shareholder loss of 10% over three years, many shareholders in Wingara AG Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As previously discussed, Gavin is compensated close to the median for companies of its size, and which belong to the same industry. At the same time, the company has logged negative shareholder returns over the last three years. But earnings growth is moving in a favorable direction, certainly a positive sign. Overall, we wouldn't say Gavin is paid an unjustified compensation, but shareholders might not favor a raise before shareholder returns show a positive trend.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 3 warning signs for Wingara you should be aware of, and 1 of them shouldn't be ignored.

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. 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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