nVent Electric plc's (NYSE:NVT) CEO Will Probably Have Their Compensation Approved By Shareholders

Key Insights

• nVent Electric's Annual General Meeting to take place on 17th of May
• CEO Beth Wozniak's total compensation includes salary of US$1.01m
• The total compensation is similar to the average for the industry
• nVent Electric's EPS grew by 53% over the past three years while total shareholder return over the past three years was 173%

It would be hard to discount the role that CEO Beth Wozniak has played in delivering the impressive results at nVent Electric plc (NYSE:NVT) recently. Coming up to the next AGM on 17th of May, 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. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

Check out our latest analysis for nVent Electric

How Does Total Compensation For Beth Wozniak Compare With Other Companies In The Industry?

According to our data, nVent Electric plc has a market capitalization of US$14b, and paid its CEO total annual compensation worth US$8.9m over the year to December 2023. That's a notable increase of 13% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.0m.

In comparison with other companies in the American Electrical industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$9.7m. From this we gather that Beth Wozniak is paid around the median for CEOs in the industry. Moreover, Beth Wozniak also holds US$1.3m worth of nVent Electric stock directly under their own name.

Component	2023	2022	Proportion (2023)
Salary	US$1.0m	US$963k	11%
Other	US$7.9m	US$6.9m	89%
Total Compensation	US$8.9m	US$7.9m	100%

Speaking on an industry level, nearly 22% of total compensation represents salary, while the remainder of 78% is other remuneration. nVent Electric pays a modest slice of remuneration through salary, as compared 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.

nVent Electric plc's Growth

Over the past three years, nVent Electric plc has seen its earnings per share (EPS) grow by 53% per year. It achieved revenue growth of 15% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 nVent Electric plc Been A Good Investment?

Boasting a total shareholder return of 173% over three years, nVent Electric plc has done well by shareholders. 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...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at 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.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 3 warning signs for nVent Electric (1 is a bit concerning!) that you should be aware of before investing here.

Switching gears from nVent Electric, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.