Radius Recycling, Inc.'s (NASDAQ:RDUS) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• Radius Recycling will host its Annual General Meeting on 28th of January
• Salary of US$1.20m is part of CEO Tamara Lundgren's total remuneration
• Total compensation is 178% above industry average
• Radius Recycling's EPS declined by 123% over the past three years while total shareholder loss over the past three years was 64%

The results at Radius Recycling, Inc. (NASDAQ:RDUS) have been quite disappointing recently and CEO Tamara Lundgren bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 28th of January. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for Radius Recycling

Comparing Radius Recycling, Inc.'s CEO Compensation With The Industry

Our data indicates that Radius Recycling, Inc. has a market capitalization of US$359m, and total annual CEO compensation was reported as US$4.9m for the year to August 2024. This means that the compensation hasn't changed much from last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.2m.

For comparison, other companies in the American Metals and Mining industry with market capitalizations ranging between US$200m and US$800m had a median total CEO compensation of US$1.8m. Accordingly, our analysis reveals that Radius Recycling, Inc. pays Tamara Lundgren north of the industry median. What's more, Tamara Lundgren holds US$13m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	US$1.2m	US$1.2m	24%
Other	US$3.7m	US$3.8m	76%
Total Compensation	US$4.9m	US$5.0m	100%

Talking in terms of the industry, salary represented approximately 36% of total compensation out of all the companies we analyzed, while other remuneration made up 64% of the pie. In Radius Recycling's case, non-salary compensation represents a greater slice of total remuneration, 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.

Radius Recycling, Inc.'s Growth

Over the last three years, Radius Recycling, Inc. has shrunk its earnings per share by 123% per year. Its revenue is down 7.9% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Radius Recycling, Inc. Been A Good Investment?

Few Radius Recycling, Inc. shareholders would feel satisfied with the return of -64% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

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.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 5 warning signs (and 3 which make us uncomfortable) in Radius Recycling we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.