We Think CommScope Holding Company, Inc.'s (NASDAQ:COMM) CEO Compensation Package Needs To Be Put Under A Microscope
Key Insights
- CommScope Holding Company will host its Annual General Meeting on 8th of May
- Total pay for CEO Chuck Treadway includes US$1.30m salary
- Total compensation is 508% above industry average
- Over the past three years, CommScope Holding Company's EPS fell by 14% and over the past three years, the total loss to shareholders 49%
CommScope Holding Company, Inc. (NASDAQ:COMM) has not performed well recently and CEO Chuck Treadway will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 8th of May. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.
View our latest analysis for CommScope Holding Company
How Does Total Compensation For Chuck Treadway Compare With Other Companies In The Industry?
Our data indicates that CommScope Holding Company, Inc. has a market capitalization of US$811m, and total annual CEO compensation was reported as US$20m for the year to December 2024. We note that's an increase of 63% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.3m.
In comparison with other companies in the American Communications industry with market capitalizations ranging from US$400m to US$1.6b, the reported median CEO total compensation was US$3.3m. This suggests that Chuck Treadway is paid more than the median for the industry. Moreover, Chuck Treadway also holds US$5.5m worth of CommScope Holding Company stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$1.3m | US$1.3m | 6% |
| Other | US$19m | US$11m | 94% |
| Total Compensation | US$20m | US$12m | 100% |
Talking in terms of the industry, salary represented approximately 19% of total compensation out of all the companies we analyzed, while other remuneration made up 81% of the pie. It's interesting to note that CommScope Holding Company 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 CommScope Holding Company, Inc.'s Growth Numbers
Over the last three years, CommScope Holding Company, Inc. has shrunk its earnings per share by 14% per year. It saw its revenue drop 7.9% over the last year.
The decline in EPS is a bit concerning. 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 CommScope Holding Company, Inc. Been A Good Investment?
Few CommScope Holding Company, Inc. shareholders would feel satisfied with the return of -49% over three years. This suggests it would be unwise for the company to pay the CEO too generously.
To Conclude...
Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 3 warning signs for CommScope Holding Company you should be aware of, and 1 of them can't be ignored.
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.