It Looks Like OneWater Marine Inc.'s (NASDAQ:ONEW) CEO May Expect Their Salary To Be Put Under The Microscope
Key Insights
OneWater Marine's Annual General Meeting to take place on 22nd of February
CEO Philip Singleton's total compensation includes salary of US$725.0k
The total compensation is similar to the average for the industry
OneWater Marine's three-year loss to shareholders was 22% while its EPS was down 28% over the past three years
The results at OneWater Marine Inc. (NASDAQ:ONEW) have been quite disappointing recently and CEO Philip Singleton bears some responsibility for this. At the upcoming AGM on 22nd of February, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.
View our latest analysis for OneWater Marine
Comparing OneWater Marine Inc.'s CEO Compensation With The Industry
According to our data, OneWater Marine Inc. has a market capitalization of US$419m, and paid its CEO total annual compensation worth US$3.0m over the year to September 2023. We note that's a decrease of 19% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$725k.
For comparison, other companies in the American Specialty Retail industry with market capitalizations ranging between US$200m and US$800m had a median total CEO compensation of US$3.7m. This suggests that OneWater Marine remunerates its CEO largely in line with the industry average.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$725k | US$725k | 24% |
Other | US$2.3m | US$3.0m | 76% |
Total Compensation | US$3.0m | US$3.7m | 100% |
Talking in terms of the industry, salary represented approximately 18% of total compensation out of all the companies we analyzed, while other remuneration made up 82% of the pie. It's interesting to note that OneWater Marine pays out a greater portion of remuneration through salary, compared to the 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 OneWater Marine Inc.'s Growth Numbers
Over the last three years, OneWater Marine Inc. has shrunk its earnings per share by 28% per year. In the last year, its revenue is up 8.9%.
Overall this is not a very positive result for shareholders. The fairly low revenue growth fails to impress given that the EPS is down. 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 OneWater Marine Inc. Been A Good Investment?
With a three year total loss of 22% for the shareholders, OneWater Marine Inc. would certainly have some dissatisfied shareholders. 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.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for OneWater Marine that investors should think about before committing capital to this stock.
Important note: OneWater Marine is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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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.
