Shareholders Will Probably Hold Off On Increasing Malibu Boats, Inc.'s (NASDAQ:MBUU) CEO Compensation For The Time Being

Under the guidance of CEO Jack Springer, Malibu Boats, Inc. (NASDAQ:MBUU) 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 03 November 2021. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Malibu Boats

How Does Total Compensation For Jack Springer Compare With Other Companies In The Industry?

At the time of writing, our data shows that Malibu Boats, Inc. has a market capitalization of US$1.4b, and reported total annual CEO compensation of US$4.5m for the year to June 2021. That's a notable increase of 98% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$755k.

In comparison with other companies in the industry with market capitalizations ranging from US$1.0b to US$3.2b, the reported median CEO total compensation was US$3.4m. This suggests that Jack Springer is paid more than the median for the industry. Furthermore, Jack Springer directly owns US$7.6m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2021	2020	Proportion (2021)
Salary	US$755k	US$720k	17%
Other	US$3.7m	US$1.5m	83%
Total Compensation	US$4.5m	US$2.3m	100%

On an industry level, around 18% of total compensation represents salary and 82% is other remuneration. Malibu Boats is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Malibu Boats, Inc.'s Growth Numbers

Malibu Boats, Inc. has seen its earnings per share (EPS) increase by 55% a year over the past three years. In the last year, its revenue is up 42%.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Malibu Boats, Inc. Been A Good Investment?

Boasting a total shareholder return of 66% over three years, Malibu Boats, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar 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, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

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. We did our research and spotted 1 warning sign for Malibu Boats that investors should look into moving forward.

Important note: Malibu Boats is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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.

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