We Think WillScot Mobile Mini Holdings Corp.'s (NASDAQ:WSC) CEO Compensation Looks Fair

Key Insights

• WillScot Mobile Mini Holdings will host its Annual General Meeting on 7th of June
• Salary of US$967.7k is part of CEO Brad Soultz's total remuneration
• Total compensation is similar to the industry average
• Over the past three years, WillScot Mobile Mini Holdings' EPS grew by 65% and over the past three years, the total shareholder return was 42%

The performance at WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) has been quite strong recently and CEO Brad Soultz has played a role in it. Coming up to the next AGM on 7th of June, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

View our latest analysis for WillScot Mobile Mini Holdings

Comparing WillScot Mobile Mini Holdings Corp.'s CEO Compensation With The Industry

At the time of writing, our data shows that WillScot Mobile Mini Holdings Corp. has a market capitalization of US$7.5b, and reported total annual CEO compensation of US$8.4m for the year to December 2023. This means that the compensation hasn't changed much from last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$968k.

On comparing similar companies from the American Construction industry with market caps ranging from US$4.0b to US$12b, we found that the median CEO total compensation was US$7.8m. From this we gather that Brad Soultz is paid around the median for CEOs in the industry. Moreover, Brad Soultz also holds US$27m worth of WillScot Mobile Mini Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	US$968k	US$935k	12%
Other	US$7.4m	US$7.7m	88%
Total Compensation	US$8.4m	US$8.6m	100%

On an industry level, around 20% of total compensation represents salary and 80% is other remuneration. It's interesting to note that WillScot Mobile Mini Holdings allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

WillScot Mobile Mini Holdings Corp.'s Growth

Over the past three years, WillScot Mobile Mini Holdings Corp. has seen its earnings per share (EPS) grow by 65% per year. Its revenue is up 5.7% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has WillScot Mobile Mini Holdings Corp. Been A Good Investment?

Most shareholders would probably be pleased with WillScot Mobile Mini Holdings Corp. for providing a total return of 42% over three years. 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.

To Conclude...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 2 warning signs for WillScot Mobile Mini Holdings (of which 1 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.

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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.