We Think Shareholders Will Probably Be Generous With Watts Water Technologies, Inc.'s (NYSE:WTS) CEO Compensation

Key Insights

• Watts Water Technologies' Annual General Meeting to take place on 21st of May
• CEO Bob Pagano's total compensation includes salary of US$1.08m
• Total compensation is similar to the industry average
• Over the past three years, Watts Water Technologies' EPS grew by 18% and over the past three years, the total shareholder return was 90%

Our free stock report includes 1 warning sign investors should be aware of before investing in Watts Water Technologies. Read for free now.

The performance at Watts Water Technologies, Inc. (NYSE:WTS) has been quite strong recently and CEO Bob Pagano has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 21st of May. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

View our latest analysis for Watts Water Technologies

Comparing Watts Water Technologies, Inc.'s CEO Compensation With The Industry

Our data indicates that Watts Water Technologies, Inc. has a market capitalization of US$8.2b, and total annual CEO compensation was reported as US$9.1m for the year to December 2024. We note that's an increase of 20% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.1m.

On comparing similar companies from the American Machinery industry with market caps ranging from US$4.0b to US$12b, we found that the median CEO total compensation was US$9.0m. This suggests that Watts Water Technologies remunerates its CEO largely in line with the industry average. Furthermore, Bob Pagano directly owns US$48m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	US$1.1m	US$1.0m	12%
Other	US$8.0m	US$6.5m	88%
Total Compensation	US$9.1m	US$7.5m	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. It's interesting to note that Watts Water Technologies allocates a smaller portion of compensation to salary in comparison 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.

Watts Water Technologies, Inc.'s Growth

Watts Water Technologies, Inc. has seen its earnings per share (EPS) increase by 18% a year over the past three years. Its revenue is up 3.9% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 Watts Water Technologies, Inc. Been A Good Investment?

We think that the total shareholder return of 90%, over three years, would leave most Watts Water Technologies, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar 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. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Watts Water Technologies that investors should look into moving forward.

Switching gears from Watts Water 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.