We Think Shareholders Are Less Likely To Approve A Pay Rise For Flywire Corporation's (NASDAQ:FLYW) CEO For Now

Key Insights

• Flywire to hold its Annual General Meeting on 3rd of June
• Total pay for CEO Mike Massaro includes US$450.0k salary
• The overall pay is comparable to the industry average
• Over the past three years, Flywire's EPS grew by 88% and over the past three years, the total loss to shareholders 43%

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In the past three years, the share price of Flywire Corporation (NASDAQ:FLYW) has struggled to grow and now shareholders are sitting on a loss. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 3rd of June. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Flywire

Comparing Flywire Corporation's CEO Compensation With The Industry

Our data indicates that Flywire Corporation has a market capitalization of US$1.3b, and total annual CEO compensation was reported as US$10.0m for the year to December 2024. We note that's an increase of 15% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$450k.

On comparing similar companies from the American Diversified Financial industry with market caps ranging from US$1.0b to US$3.2b, we found that the median CEO total compensation was US$8.4m. This suggests that Flywire remunerates its CEO largely in line with the industry average. Moreover, Mike Massaro also holds US$18m worth of Flywire stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 12% of total compensation represents salary and 88% is other remuneration. Flywire has chosen to walk a path less trodden, opting to compensate its CEO with less of a traditional salary and more non-salary rewards over the last year. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Flywire Corporation's Growth

Flywire Corporation's earnings per share (EPS) grew 88% per year over the last three years. It achieved revenue growth of 21% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Flywire Corporation Been A Good Investment?

Few Flywire Corporation shareholders would feel satisfied with the return of -43% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Flywire prefers rewarding its CEO through non-salary benefits. Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Flywire 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.