Increases to CEO Compensation Might Be Put On Hold For Now at Liquidity Services, Inc. (NASDAQ:LQDT)

Performance at Liquidity Services, Inc. (NASDAQ:LQDT) has been reasonably good and CEO Bill Angrick has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 24 February 2022, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Liquidity Services

How Does Total Compensation For Bill Angrick Compare With Other Companies In The Industry?

According to our data, Liquidity Services, Inc. has a market capitalization of US$578m, and paid its CEO total annual compensation worth US$2.8m over the year to September 2021. Notably, that's an increase of 12% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$420k.

In comparison with other companies in the industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$1.9m. This suggests that Bill Angrick is paid more than the median for the industry. Furthermore, Bill Angrick directly owns US$114m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2021	2020	Proportion (2021)
Salary	US$420k	US$420k	15%
Other	US$2.4m	US$2.1m	85%
Total Compensation	US$2.8m	US$2.5m	100%

Speaking on an industry level, nearly 25% of total compensation represents salary, while the remainder of 75% is other remuneration. Liquidity Services pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Liquidity Services, Inc.'s Growth

Liquidity Services, Inc.'s earnings per share (EPS) grew 112% per year over the last three years. In the last year, its revenue is up 27%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Liquidity Services, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Liquidity Services, Inc. for providing a total return of 139% over three years. 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.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

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 2 warning signs for Liquidity Services that you should be aware of before investing.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.