It May Be Possible That WiseTech Global Limited's (ASX:WTC) CEO Compensation Could Get Bumped Up
Key Insights
WiseTech Global will host its Annual General Meeting on 23rd of November
CEO Richard White's total compensation includes salary of AU$974.7k
The overall pay is 94% below the industry average
WiseTech Global's EPS grew by 8.5% over the past three years while total shareholder return over the past three years was 121%
Shareholders will be pleased by the robust performance of WiseTech Global Limited (ASX:WTC) recently and this will be kept in mind in the upcoming AGM on 23rd of November. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.
See our latest analysis for WiseTech Global
Comparing WiseTech Global Limited's CEO Compensation With The Industry
At the time of writing, our data shows that WiseTech Global Limited has a market capitalization of AU$22b, and reported total annual CEO compensation of AU$1.1m for the year to June 2023. This means that the compensation hasn't changed much from last year. Notably, the salary which is AU$974.7k, represents most of the total compensation being paid.
For comparison, other companies in the Australian Software industry with market capitalizations above AU$12b, reported a median total CEO compensation of AU$17m. That is to say, Richard White is paid under the industry median.
Component | 2023 | 2022 | Proportion (2023) |
Salary | AU$975k | AU$976k | 89% |
Other | AU$117k | AU$118k | 11% |
Total Compensation | AU$1.1m | AU$1.1m | 100% |
Speaking on an industry level, nearly 59% of total compensation represents salary, while the remainder of 41% is other remuneration. WiseTech Global pays out 89% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
WiseTech Global Limited's Growth
Over the past three years, WiseTech Global Limited has seen its earnings per share (EPS) grow by 8.5% per year. In the last year, its revenue is up 29%.
It's great to see that revenue growth is strong. And in that context, the modest EPS improvement certainly isn't shabby. We'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has WiseTech Global Limited Been A Good Investment?
Most shareholders would probably be pleased with WiseTech Global Limited for providing a total return of 121% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
The company's overall performance, while not bad, could be better. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling WiseTech Global (free visualization of insider trades).
Switching gears from WiseTech Global, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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.
