U.S. Markets open in 6 hrs 19 mins

We Think Some Shareholders May Hesitate To Increase JELD-WEN Holding, Inc.'s (NYSE:JELD) CEO Compensation

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Under the guidance of CEO Gary Michel, JELD-WEN Holding, Inc. (NYSE:JELD) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 29 April 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for JELD-WEN Holding

How Does Total Compensation For Gary Michel Compare With Other Companies In The Industry?

At the time of writing, our data shows that JELD-WEN Holding, Inc. has a market capitalization of US$3.0b, and reported total annual CEO compensation of US$8.4m for the year to December 2020. We note that's an increase of 53% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$923k.

In comparison with other companies in the industry with market capitalizations ranging from US$2.0b to US$6.4b, the reported median CEO total compensation was US$5.0m. This suggests that Gary Michel is paid more than the median for the industry. What's more, Gary Michel holds US$1.7m worth of shares in the company in their own name.

Component

2020

2019

Proportion (2020)

Salary

US$923k

US$867k

11%

Other

US$7.5m

US$4.6m

89%

Total Compensation

US$8.4m

US$5.5m

100%

Talking in terms of the industry, salary represented approximately 16% of total compensation out of all the companies we analyzed, while other remuneration made up 84% of the pie. It's interesting to note that JELD-WEN Holding allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ceo-compensation
ceo-compensation

A Look at JELD-WEN Holding, Inc.'s Growth Numbers

JELD-WEN Holding, Inc.'s earnings per share (EPS) grew 22% per year over the last three years. Its revenue is down 1.3% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. 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 JELD-WEN Holding, Inc. Been A Good Investment?

JELD-WEN Holding, Inc. has not done too badly by shareholders, with a total return of 4.5%, over three years. It would be nice to see that metric improve in the future. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 3 warning signs for JELD-WEN Holding that you should be aware of before investing.

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.

This article by Simply Wall St is general in nature. 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.