Here's Why Washington Federal, Inc.'s (NASDAQ:WAFD) CEO May Have Their Pay Bumped Up

Simply Wall St
January 19, 2022
Source: Shutterstock

Shareholders will probably not be disappointed by the robust results at Washington Federal, Inc. (NASDAQ:WAFD) recently and they will be keeping this in mind as they go into the AGM on 25 January 2022. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.

Check out our latest analysis for Washington Federal

How Does Total Compensation For Brent Beardall Compare With Other Companies In The Industry?

At the time of writing, our data shows that Washington Federal, Inc. has a market capitalization of US$2.4b, and reported total annual CEO compensation of US$3.3m for the year to September 2021. That's a notable increase of 77% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$775k.

On examining similar-sized companies in the industry with market capitalizations between US$2.0b and US$6.4b, we discovered that the median CEO total compensation of that group was US$4.8m. This suggests that Brent Beardall is paid below the industry median. Moreover, Brent Beardall also holds US$14m worth of Washington Federal stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component20212020Proportion (2021)
Salary US$775k US$700k 24%
Other US$2.5m US$1.1m 76%
Total CompensationUS$3.3m US$1.8m100%

On an industry level, roughly 51% of total compensation represents salary and 49% is other remuneration. Washington Federal sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

NasdaqGS:WAFD CEO Compensation January 19th 2022

A Look at Washington Federal, Inc.'s Growth Numbers

Over the past three years, Washington Federal, Inc. has seen its earnings per share (EPS) grow by 4.3% per year. Its revenue is up 18% over the last year.

This revenue growth could really point to a brighter future. And the modest growth in EPS isn't bad, either. So while performance isn't amazing, we think it really does seem quite respectable. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Washington Federal, Inc. Been A Good Investment?

We think that the total shareholder return of 40%, over three years, would leave most Washington Federal, Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

While the company seems to be headed in the right direction performance-wise, there's always room for improvement. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. Rather, investors would more likely want to engage on discussions related to key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Washington Federal (free visualization of insider trades).

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.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.