Shareholders May Be More Conservative With Euronet Worldwide, Inc.'s (NASDAQ:EEFT) CEO Compensation For Now

Key Insights

• Euronet Worldwide's Annual General Meeting to take place on 16th of May
• Salary of US$850.0k is part of CEO Mike Brown's total remuneration
• The total compensation is 46% higher than the average for the industry
• Euronet Worldwide's three-year loss to shareholders was 19% while its EPS grew by 55% over the past three years

Shareholders of Euronet Worldwide, Inc. (NASDAQ:EEFT) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 16th of May. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

View our latest analysis for Euronet Worldwide

How Does Total Compensation For Mike Brown Compare With Other Companies In The Industry?

According to our data, Euronet Worldwide, Inc. has a market capitalization of US$5.2b, and paid its CEO total annual compensation worth US$14m over the year to December 2023. That is, the compensation was roughly the same as last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$850k.

On comparing similar companies from the American Diversified Financial industry with market caps ranging from US$4.0b to US$12b, we found that the median CEO total compensation was US$9.5m. Hence, we can conclude that Mike Brown is remunerated higher than the industry median. Furthermore, Mike Brown directly owns US$233m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	US$850k	US$850k	6%
Other	US$13m	US$13m	94%
Total Compensation	US$14m	US$14m	100%

Speaking on an industry level, nearly 15% of total compensation represents salary, while the remainder of 85% is other remuneration. Euronet Worldwide sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Euronet Worldwide, Inc.'s Growth Numbers

Euronet Worldwide, Inc. has seen its earnings per share (EPS) increase by 55% a year over the past three years. Its revenue is up 9.6% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Euronet Worldwide, Inc. Been A Good Investment?

With a three year total loss of 19% for the shareholders, Euronet Worldwide, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

Whatever your view on compensation, you might want to check if insiders are buying or selling Euronet Worldwide shares (free trial).

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.