Alexandre L’Heureux has been the CEO of WSP Global Inc. (TSE:WSP) since 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Alexandre L’Heureux’s Compensation Compare With Similar Sized Companies?
Our data indicates that WSP Global Inc. is worth CA$7.8b, and total annual CEO compensation is CA$6.5m. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at CA$1.1m. We looked at a group of companies with market capitalizations from CA$5.3b to CA$16b, and the median CEO total compensation was CA$5.4m.
That means Alexandre L’Heureux receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at WSP Global has changed from year to year.
Is WSP Global Inc. Growing?
Over the last three years WSP Global Inc. has grown its earnings per share (EPS) by an average of 11% per year (using a line of best fit). In the last year, its revenue is up 13%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.
Has WSP Global Inc. Been A Good Investment?
Boasting a total shareholder return of 89% over three years, WSP Global Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Alexandre L’Heureux is paid around what is normal the leaders of comparable size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Whatever your view on compensation, you might want to check if insiders are buying or selling WSP Global shares (free trial).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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