Oshkosh Corporation's (NYSE:OSK) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Oshkosh's Annual General Meeting to take place on 6th of May
• Salary of US$1.19m is part of CEO John Pfeifer's total remuneration
• The overall pay is 40% above the industry average
• Over the past three years, Oshkosh's EPS grew by 19% and over the past three years, the total loss to shareholders 1.6%

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As many shareholders of Oshkosh Corporation (NYSE:OSK) will be aware, they have not made a gain on their investment in the past three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 6th of May. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Oshkosh

Comparing Oshkosh Corporation's CEO Compensation With The Industry

Our data indicates that Oshkosh Corporation has a market capitalization of US$5.7b, and total annual CEO compensation was reported as US$13m for the year to December 2024. That's a notable increase of 20% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.2m.

For comparison, other companies in the American Machinery industry with market capitalizations ranging between US$4.0b and US$12b had a median total CEO compensation of US$9.0m. Hence, we can conclude that John Pfeifer is remunerated higher than the industry median. What's more, John Pfeifer holds US$10m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	US$1.2m	US$1.1m	10%
Other	US$11m	US$9.3m	90%
Total Compensation	US$13m	US$10m	100%

On an industry level, around 15% of total compensation represents salary and 85% is other remuneration. Oshkosh sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Oshkosh Corporation's Growth

Over the past three years, Oshkosh Corporation has seen its earnings per share (EPS) grow by 19% per year. In the last year, its revenue is up 11%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Oshkosh Corporation Been A Good Investment?

Given the total shareholder loss of 1.6% over three years, many shareholders in Oshkosh Corporation are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

So you may want to check if insiders are buying Oshkosh shares with their own money (free access).

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.