It Looks Like Shareholders Would Probably Approve Weave Communications, Inc.'s (NYSE:WEAV) CEO Compensation Package

Key Insights

• Weave Communications will host its Annual General Meeting on 21st of May
• Salary of US$498.1k is part of CEO Brett White's total remuneration
• The overall pay is comparable to the industry average
• Over the past three years, Weave Communications' EPS grew by 50% and over the past three years, the total shareholder return was 123%

We've discovered 3 warning signs about Weave Communications. View them for free.

We have been pretty impressed with the performance at Weave Communications, Inc. (NYSE:WEAV) recently and CEO Brett White deserves a mention for their role in it. Coming up to the next AGM on 21st of May, shareholders would be keeping this in mind. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

View our latest analysis for Weave Communications

Comparing Weave Communications, Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that Weave Communications, Inc. has a market capitalization of US$824m, and reported total annual CEO compensation of US$5.7m for the year to December 2024. Notably, that's an increase of 9.8% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$498k.

In comparison with other companies in the American Software industry with market capitalizations ranging from US$400m to US$1.6b, the reported median CEO total compensation was US$4.8m. From this we gather that Brett White is paid around the median for CEOs in the industry. Furthermore, Brett White directly owns US$12m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	US$498k	US$469k	9%
Other	US$5.2m	US$4.7m	91%
Total Compensation	US$5.7m	US$5.2m	100%

On an industry level, around 11% of total compensation represents salary and 89% is other remuneration. It's interesting to note that Weave Communications 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.

A Look at Weave Communications, Inc.'s Growth Numbers

Weave Communications, Inc. has seen its earnings per share (EPS) increase by 50% a year over the past three years. Its revenue is up 20% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Weave Communications, Inc. Been A Good Investment?

Boasting a total shareholder return of 123% over three years, Weave Communications, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Given the improved performance, shareholders may be more forgiving of CEO compensation in the upcoming AGM. In saying that, some shareholders may feel that the more important issues to be addressed may be how the management plans to steer the company towards sustainable profitability in the future.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 3 warning signs for Weave Communications (of which 1 is significant!) that you should know about in order to have a holistic understanding of the stock.

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.