We Discuss Why Wabash National Corporation's (NYSE:WNC) CEO Compensation May Be Closely Reviewed

Key Insights

• Wabash National to hold its Annual General Meeting on 14th of May
• Salary of US$1.09m is part of CEO Brent Yeagy's total remuneration
• Total compensation is 93% above industry average
• Wabash National's three-year loss to shareholders was 39% while its EPS was down 44% over the past three years

Our free stock report includes 3 warning signs investors should be aware of before investing in Wabash National. Read for free now.

Wabash National Corporation (NYSE:WNC) has not performed well recently and CEO Brent Yeagy will probably need to up their game. At the upcoming AGM on 14th of May, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for Wabash National

Comparing Wabash National Corporation's CEO Compensation With The Industry

At the time of writing, our data shows that Wabash National Corporation has a market capitalization of US$338m, and reported total annual CEO compensation of US$5.9m for the year to December 2024. Notably, that's a decrease of 22% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.1m.

On examining similar-sized companies in the American Machinery industry with market capitalizations between US$200m and US$800m, we discovered that the median CEO total compensation of that group was US$3.1m. Hence, we can conclude that Brent Yeagy is remunerated higher than the industry median. Moreover, Brent Yeagy also holds US$2.3m worth of Wabash National stock directly under their own name.

On an industry level, around 15% of total compensation represents salary and 85% is other remuneration. It's interesting to note that Wabash National pays out a greater portion of remuneration through salary, compared to the industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Wabash National Corporation's Growth

Wabash National Corporation has reduced its earnings per share by 44% a year over the last three years. Its revenue is down 25% over the previous year.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. 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 Wabash National Corporation Been A Good Investment?

The return of -39% over three years would not have pleased Wabash National Corporation shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 3 warning signs for Wabash National that you should be aware of before investing.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.