Edgewell Personal Care Company's (NYSE:EPC) CEO Compensation Is Looking A Bit Stretched At The Moment

Performance at Edgewell Personal Care Company (NYSE:EPC) has been reasonably good and CEO Rod Little has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 03 February 2023. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Edgewell Personal Care

Comparing Edgewell Personal Care Company's CEO Compensation With The Industry

At the time of writing, our data shows that Edgewell Personal Care Company has a market capitalization of US$2.1b, and reported total annual CEO compensation of US$9.3m for the year to September 2022. We note that's an increase of 15% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.0m.

For comparison, other companies in the American Personal Products industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$5.2m. Hence, we can conclude that Rod Little is remunerated higher than the industry median. What's more, Rod Little holds US$7.7m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2022	2021	Proportion (2022)
Salary	US$1.0m	US$1.0m	11%
Other	US$8.3m	US$7.1m	89%
Total Compensation	US$9.3m	US$8.1m	100%

Speaking on an industry level, nearly 48% of total compensation represents salary, while the remainder of 52% is other remuneration. It's interesting to note that Edgewell Personal Care allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Edgewell Personal Care Company's Growth

Edgewell Personal Care Company's earnings per share (EPS) grew 103% per year over the last three years. In the last year, its revenue is up 4.0%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 Edgewell Personal Care Company Been A Good Investment?

Most shareholders would probably be pleased with Edgewell Personal Care Company for providing a total return of 65% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 2 warning signs for Edgewell Personal Care (of which 1 is a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.

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.