It Looks Like Owens & Minor, Inc.'s (NYSE:OMI) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights

• Owens & Minor will host its Annual General Meeting on 15th of May
• Total pay for CEO Ed Pesicka includes US$1.11m salary
• The overall pay is 219% above the industry average
• Owens & Minor's three-year loss to shareholders was 78% while its EPS was down 117% over the past three years

We've discovered 3 warning signs about Owens & Minor. View them for free.

Owens & Minor, Inc. (NYSE:OMI) has not performed well recently and CEO Ed Pesicka will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 15th of May. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for Owens & Minor

How Does Total Compensation For Ed Pesicka Compare With Other Companies In The Industry?

Our data indicates that Owens & Minor, Inc. has a market capitalization of US$596m, and total annual CEO compensation was reported as US$11m for the year to December 2024. Notably, that's an increase of 28% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.1m.

On comparing similar companies from the American Healthcare industry with market caps ranging from US$200m to US$800m, we found that the median CEO total compensation was US$3.4m. Accordingly, our analysis reveals that Owens & Minor, Inc. pays Ed Pesicka north of the industry median. Furthermore, Ed Pesicka directly owns US$9.2m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	US$1.1m	US$1.0m	10%
Other	US$9.6m	US$7.4m	90%
Total Compensation	US$11m	US$8.4m	100%

Speaking on an industry level, nearly 15% of total compensation represents salary, while the remainder of 85% is other remuneration. Owens & Minor sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Owens & Minor, Inc.'s Growth

Over the last three years, Owens & Minor, Inc. has shrunk its earnings per share by 117% per year. It achieved revenue growth of 3.6% over the last year.

Few shareholders would be pleased to read that EPS have declined. The fairly low revenue growth fails to impress given that the EPS is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Owens & Minor, Inc. Been A Good Investment?

Few Owens & Minor, Inc. shareholders would feel satisfied with the return of -78% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 3 warning signs for Owens & Minor (2 make us uncomfortable!) that you should be aware of before investing here.

Switching gears from Owens & Minor, 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.