Shareholders May Be More Conservative With Westinghouse Air Brake Technologies Corporation's (NYSE:WAB) CEO Compensation For Now

Key Insights

• Westinghouse Air Brake Technologies' Annual General Meeting to take place on 15th of May
• CEO Rafael Santana's total compensation includes salary of US$1.33m
• The overall pay is 72% above the industry average
• Westinghouse Air Brake Technologies' EPS grew by 26% over the past three years while total shareholder return over the past three years was 129%

We've discovered 1 warning sign about Westinghouse Air Brake Technologies. View them for free.

Under the guidance of CEO Rafael Santana, Westinghouse Air Brake Technologies Corporation (NYSE:WAB) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 15th of May. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Westinghouse Air Brake Technologies

Comparing Westinghouse Air Brake Technologies Corporation's CEO Compensation With The Industry

According to our data, Westinghouse Air Brake Technologies Corporation has a market capitalization of US$32b, and paid its CEO total annual compensation worth US$21m over the year to December 2024. That's a notable increase of 35% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.3m.

For comparison, other companies in the American Machinery industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$12m. This suggests that Rafael Santana is paid more than the median for the industry. Furthermore, Rafael Santana directly owns US$28m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	US$1.3m	US$1.3m	6%
Other	US$20m	US$14m	94%
Total Compensation	US$21m	US$15m	100%

Talking in terms of the industry, salary represented approximately 15% of total compensation out of all the companies we analyzed, while other remuneration made up 85% of the pie. Westinghouse Air Brake Technologies 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.

A Look at Westinghouse Air Brake Technologies Corporation's Growth Numbers

Westinghouse Air Brake Technologies Corporation has seen its earnings per share (EPS) increase by 26% a year over the past three years. In the last year, its revenue is up 5.2%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Westinghouse Air Brake Technologies Corporation Been A Good Investment?

Boasting a total shareholder return of 129% over three years, Westinghouse Air Brake Technologies Corporation 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.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Westinghouse Air Brake Technologies that investors should be aware of in a dynamic business environment.

Switching gears from Westinghouse Air Brake Technologies, 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.