Shareholders Will Probably Hold Off On Increasing Westwood Holdings Group, Inc.'s (NYSE:WHG) CEO Compensation For The Time Being

Key Insights

• Westwood Holdings Group will host its Annual General Meeting on 30th of April
• CEO Brian Casey's total compensation includes salary of US$750.0k
• The overall pay is 199% above the industry average
• Westwood Holdings Group's total shareholder return over the past three years was 19% while its EPS was down 40% over the past three years

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The share price of Westwood Holdings Group, Inc. (NYSE:WHG) has been growing in the past few years, however, the per-share earnings growth has been lacking, suggesting something is amiss. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 30th of April. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. From what we gathered, we think shareholders should be wary of raising CEO compensation until the company shows some marked improvement.

Check out our latest analysis for Westwood Holdings Group

How Does Total Compensation For Brian Casey Compare With Other Companies In The Industry?

At the time of writing, our data shows that Westwood Holdings Group, Inc. has a market capitalization of US$132m, and reported total annual CEO compensation of US$2.1m for the year to December 2024. That is, the compensation was roughly the same as last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$750k.

In comparison with other companies in the American Capital Markets industry with market capitalizations under US$200m, the reported median total CEO compensation was US$703k. Hence, we can conclude that Brian Casey is remunerated higher than the industry median. Furthermore, Brian Casey directly owns US$8.0m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 11% of total compensation represents salary, while the remainder of 89% is other remuneration. According to our research, Westwood Holdings Group has allocated a higher percentage of pay to salary in comparison to the wider industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Westwood Holdings Group, Inc.'s Growth Numbers

Westwood Holdings Group, Inc. has reduced its earnings per share by 40% a year over the last three years. Its revenue is up 5.5% over the last year.

Overall this is not a very positive result for shareholders. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Westwood Holdings Group, Inc. Been A Good Investment?

With a total shareholder return of 19% over three years, Westwood Holdings Group, Inc. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Shareholder returns, while positive, should be looked at along with earnings, which have not grown at all recently. This makes us think the share price momentum may slow in the future. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

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. That's why we did some digging and identified 3 warning signs for Westwood Holdings Group that investors should think about before committing capital to this stock.

Switching gears from Westwood Holdings Group, 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.