ManpowerGroup Inc.'s (NYSE:MAN) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• ManpowerGroup's Annual General Meeting to take place on 3rd of May
• CEO Jonas Prising's total compensation includes salary of US$1.30m
• The total compensation is 46% higher than the average for the industry
• ManpowerGroup's EPS declined by 11% over the past three years while total shareholder loss over the past three years was 31%

ManpowerGroup Inc. (NYSE:MAN) has not performed well recently and CEO Jonas Prising will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 3rd of May. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.

Check out our latest analysis for ManpowerGroup

Comparing ManpowerGroup Inc.'s CEO Compensation With The Industry

Our data indicates that ManpowerGroup Inc. has a market capitalization of US$3.7b, and total annual CEO compensation was reported as US$13m for the year to December 2023. That's slightly lower by 3.1% over the previous year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.3m.

For comparison, other companies in the American Professional Services industry with market capitalizations ranging between US$2.0b and US$6.4b had a median total CEO compensation of US$8.7m. Accordingly, our analysis reveals that ManpowerGroup Inc. pays Jonas Prising north of the industry median. What's more, Jonas Prising holds US$33m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	US$1.3m	US$1.3m	10%
Other	US$11m	US$12m	90%
Total Compensation	US$13m	US$13m	100%

On an industry level, roughly 15% of total compensation represents salary and 85% is other remuneration. It's interesting to note that ManpowerGroup 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.

ManpowerGroup Inc.'s Growth

Over the last three years, ManpowerGroup Inc. has shrunk its earnings per share by 11% per year. It saw its revenue drop 4.5% over the last year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 ManpowerGroup Inc. Been A Good Investment?

The return of -31% over three years would not have pleased ManpowerGroup Inc. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 3 warning signs for ManpowerGroup that investors should be aware of in a dynamic business environment.

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.