We Think Shareholders Will Probably Be Generous With Liquidity Services, Inc.'s (NASDAQ:LQDT) CEO Compensation

We have been pretty impressed with the performance at Liquidity Services, Inc. (NASDAQ:LQDT) recently and CEO Bill Angrick deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 23 February 2023. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

View our latest analysis for Liquidity Services

Comparing Liquidity Services, Inc.'s CEO Compensation With The Industry

Our data indicates that Liquidity Services, Inc. has a market capitalization of US$413m, and total annual CEO compensation was reported as US$4.3m for the year to September 2022. Notably, that's an increase of 56% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$420k.

On comparing similar companies from the American Commercial Services industry with market caps ranging from US$200m to US$800m, we found that the median CEO total compensation was US$4.9m. So it looks like Liquidity Services compensates Bill Angrick in line with the median for the industry. Furthermore, Bill Angrick directly owns US$92m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2022	2021	Proportion (2022)
Salary	US$420k	US$420k	10%
Other	US$3.9m	US$2.4m	90%
Total Compensation	US$4.3m	US$2.8m	100%

On an industry level, roughly 18% of total compensation represents salary and 82% is other remuneration. It's interesting to note that Liquidity Services allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Liquidity Services, Inc.'s Growth

Over the past three years, Liquidity Services, Inc. has seen its earnings per share (EPS) grow by 91% per year. In the last year, its revenue is up 6.4%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Liquidity Services, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Liquidity Services, Inc. for providing a total return of 173% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in 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.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 3 warning signs for Liquidity Services you should be aware of, and 2 of them shouldn't be ignored.

Switching gears from Liquidity Services, 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.