What Did Wagners Holding's (ASX:WGN) CEO Take Home Last Year?

This article will reflect on the compensation paid to Cameron Coleman who has served as CEO of Wagners Holding Company Limited (ASX:WGN) since 2012. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

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$346m, and paid its CEO total annual compensation worth AU$568k over the year to June 2020. That's a modest increase of 3.2% on the prior year. Notably, the salary which is AU$501.9k, represents most of the total compensation being paid.

On comparing similar companies from the same industry with market caps ranging from AU$129m to AU$514m, we found that the median CEO total compensation was AU$729k. This suggests that Wagners Holding remunerates its CEO largely in line with the industry average. Furthermore, Cameron Coleman directly owns AU$151k worth of shares in the company.

On an industry level, roughly 54% of total compensation represents salary and 46% is other remuneration. According to our research, Wagners Holding 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.

A Look at Wagners Holding Company Limited's Growth Numbers

Wagners Holding Company Limited has reduced its earnings per share by 60% a year over the last three years. It achieved revenue growth of 5.4% over the last year.

Overall this is not a very positive result for shareholders. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Wagners Holding Company Limited Been A Good Investment?

Since shareholders would have lost about 51% over three years, some Wagners Holding Company Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As we noted earlier, Wagners Holding pays its CEO in line with similar-sized companies belonging to the same industry. Meanwhile, EPS growth and shareholder returns have been in the red for the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.

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. We identified 2 warning signs for Wagners Holding (1 is significant!) that you should be aware of before investing here.

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.

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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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