Shareholders Will Probably Hold Off On Increasing Maiden Holdings, Ltd.'s (NASDAQ:MHLD) CEO Compensation For The Time Being

Key Insights

• Maiden Holdings to hold its Annual General Meeting on 6th of May
• Salary of US$875.0k is part of CEO Pat Haveron's total remuneration
• The total compensation is similar to the average for the industry
• Maiden Holdings' three-year loss to shareholders was 44% while its EPS was down 71% over the past three years

The underwhelming share price performance of Maiden Holdings, Ltd. (NASDAQ:MHLD) in the past three years would have disappointed many shareholders. In addition, the company's per-share earnings growth is not looking good, despite growing revenues. In light of this performance, shareholders will have a chance to question the board in the upcoming AGM on 6th of May, where they can impact on future company performance by voting on resolutions, including executive compensation. We think shareholders may be cautious of approving a pay rise for the CEO at the moment, based on our analysis below.

View our latest analysis for Maiden Holdings

Comparing Maiden Holdings, Ltd.'s CEO Compensation With The Industry

Our data indicates that Maiden Holdings, Ltd. has a market capitalization of US$209m, and total annual CEO compensation was reported as US$1.7m for the year to December 2023. We note that's a decrease of 25% compared to last year. We note that the salary of US$875.0k makes up a sizeable portion of the total compensation received by the CEO.

In comparison with other companies in the American Insurance industry with market capitalizations ranging from US$100m to US$400m, the reported median CEO total compensation was US$2.4m. This suggests that Maiden Holdings remunerates its CEO largely in line with the industry average. What's more, Pat Haveron holds US$6.5m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	US$875k	US$725k	51%
Other	US$829k	US$1.5m	49%
Total Compensation	US$1.7m	US$2.3m	100%

On an industry level, around 14% of total compensation represents salary and 86% is other remuneration. It's interesting to note that Maiden Holdings pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Maiden Holdings, Ltd.'s Growth

Over the last three years, Maiden Holdings, Ltd. has shrunk its earnings per share by 71% per year. It achieved revenue growth of 54% over the last year.

The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Maiden Holdings, Ltd. Been A Good Investment?

Few Maiden Holdings, Ltd. shareholders would feel satisfied with the return of -44% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

The loss to shareholders over the past three years is certainly concerning and possibly has something to do with the fact that the company's earnings haven't grown. Shareholders will get the chance at the upcoming AGM 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.

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 1 warning sign for Maiden Holdings that you should be aware of before investing.

Switching gears from Maiden Holdings, 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.