Some Shareholders May find It Hard To Increase Hayward Holdings, Inc.'s (NYSE:HAYW) CEO Compensation This Year

Key Insights

• Hayward Holdings will host its Annual General Meeting on 22nd of May
• CEO Kevin Holleran's total compensation includes salary of US$938.0k
• The total compensation is similar to the average for the industry
• Hayward Holdings' total shareholder return over the past three years was 0.4% while its EPS was down 16% over the past three years

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

The anaemic share price growth at Hayward Holdings, Inc. (NYSE:HAYW) over the past few years has probably not impressed shareholders and may be due to earnings not growing over that period. The upcoming AGM on 22nd of May may be an opportunity for shareholders to bring up any concerns they may have for the board’s attention. One way that shareholders can influence managerial decisions is through voting on CEO and executive remuneration packages, which studies show could impact company performance. From what we gathered, we think shareholders should be wary of raising CEO compensation until the company shows some marked improvement.

View our latest analysis for Hayward Holdings

Comparing Hayward Holdings, Inc.'s CEO Compensation With The Industry

Our data indicates that Hayward Holdings, Inc. has a market capitalization of US$3.2b, and total annual CEO compensation was reported as US$6.0m for the year to December 2024. We note that's an increase of 21% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$938k.

For comparison, other companies in the American Building industry with market capitalizations ranging between US$2.0b and US$6.4b had a median total CEO compensation of US$6.0m. So it looks like Hayward Holdings compensates Kevin Holleran in line with the median for the industry. Moreover, Kevin Holleran also holds US$5.2m worth of Hayward Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 16% of total compensation represents salary and 84% is other remuneration. There isn't a significant difference between Hayward Holdings and the broader market, in terms of salary allocation in the overall compensation package. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Hayward Holdings, Inc.'s Growth

Over the last three years, Hayward Holdings, Inc. has shrunk its earnings per share by 16% per year. In the last year, its revenue is up 7.3%.

Overall this is not a very positive result for shareholders. The fairly low revenue growth fails to impress given that the EPS is down. 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 Hayward Holdings, Inc. Been A Good Investment?

Hayward Holdings, Inc. has not done too badly by shareholders, with a total return of 0.4%, over three years. It would be nice to see that metric improve in the future. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.

In Summary...

The flat share price growth combined with the the fact that earnings have failed to grow makes us wonder whether the share price will have any further strong momentum. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Hayward Holdings that you should be aware of before investing.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.