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Shareholders Will Likely Find The Hain Celestial Group, Inc.'s (NASDAQ:HAIN) CEO Compensation Acceptable

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·3 min read
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Shareholders may be wondering what CEO Mark Schiller plans to do to improve the less than great performance at The Hain Celestial Group, Inc. (NASDAQ:HAIN) recently. At the next AGM coming up on 28 October 2021, they can influence managerial decision making through voting on resolutions, including executive remuneration. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. In our opinion, CEO compensation does not look excessive and we discuss why.

View our latest analysis for Hain Celestial Group

How Does Total Compensation For Mark Schiller Compare With Other Companies In The Industry?

Our data indicates that The Hain Celestial Group, Inc. has a market capitalization of US$4.3b, and total annual CEO compensation was reported as US$2.9m for the year to June 2021. That's a notable increase of 8.5% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.0m.

On examining similar-sized companies in the industry with market capitalizations between US$2.0b and US$6.4b, we discovered that the median CEO total compensation of that group was US$4.5m. This suggests that Mark Schiller is paid below the industry median. Moreover, Mark Schiller also holds US$3.2m worth of Hain Celestial Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component

2021

2020

Proportion (2021)

Salary

US$1.0m

US$996k

35%

Other

US$1.9m

US$1.7m

65%

Total Compensation

US$2.9m

US$2.7m

100%

On an industry level, around 33% of total compensation represents salary and 67% is other remuneration. Hain Celestial Group is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ceo-compensation
ceo-compensation

The Hain Celestial Group, Inc.'s Growth

Over the last three years, The Hain Celestial Group, Inc. has shrunk its earnings per share by 1.7% per year. Its revenue is down 4.1% over the previous year.

A lack of EPS improvement is not good to see. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 The Hain Celestial Group, Inc. Been A Good Investment?

Most shareholders would probably be pleased with The Hain Celestial Group, Inc. for providing a total return of 80% 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.

In Summary...

Despite the strong returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about the stock keeping up its current momentum. These concerns could be addressed to the board and shareholders should revisit their investment thesis to see if it still makes sense.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Hain Celestial Group that investors should look into moving forward.

Important note: Hain Celestial Group 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.

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.

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