It Looks Like Shareholders Would Probably Approve WisdomTree, Inc.'s (NYSE:WT) CEO Compensation Package

Key Insights

• WisdomTree to hold its Annual General Meeting on 12th of June
• Total pay for CEO Jono Steinberg includes US$550.0k salary
• The total compensation is similar to the average for the industry
• Over the past three years, WisdomTree's EPS grew by 65% and over the past three years, the total shareholder return was 52%

It would be hard to discount the role that CEO Jono Steinberg has played in delivering the impressive results at WisdomTree, Inc. (NYSE:WT) recently. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 12th of June. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

View our latest analysis for WisdomTree

How Does Total Compensation For Jono Steinberg Compare With Other Companies In The Industry?

According to our data, WisdomTree, Inc. has a market capitalization of US$1.5b, and paid its CEO total annual compensation worth US$6.7m over the year to December 2023. Notably, that's an increase of 23% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$550k.

In comparison with other companies in the American Capital Markets industry with market capitalizations ranging from US$1.0b to US$3.2b, the reported median CEO total compensation was US$6.5m. So it looks like WisdomTree compensates Jono Steinberg in line with the median for the industry. Moreover, Jono Steinberg also holds US$91m worth of WisdomTree stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	US$550k	US$550k	8%
Other	US$6.2m	US$4.9m	92%
Total Compensation	US$6.7m	US$5.4m	100%

Speaking on an industry level, nearly 9% of total compensation represents salary, while the remainder of 91% is other remuneration. WisdomTree sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

WisdomTree, Inc.'s Growth

Over the past three years, WisdomTree, Inc. has seen its earnings per share (EPS) grow by 65% per year. Its revenue is up 19% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 WisdomTree, Inc. Been A Good Investment?

Boasting a total shareholder return of 52% over three years, WisdomTree, Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

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

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.