It's Unlikely That Mr. Cooper Group Inc.'s (NASDAQ:COOP) CEO Will See A Huge Pay Rise This Year
Performance at Mr. Cooper Group Inc. (NASDAQ:COOP) has been reasonably good and CEO Jay Bray has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 13 May 2021. However, some shareholders may still want to keep CEO compensation within reason.
See our latest analysis for Mr. Cooper Group
Comparing Mr. Cooper Group Inc.'s CEO Compensation With the industry
Our data indicates that Mr. Cooper Group Inc. has a market capitalization of US$2.9b, and total annual CEO compensation was reported as US$9.3m for the year to December 2020. That's a notable increase of 29% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.0m.
For comparison, other companies in the same industry with market capitalizations ranging between US$2.0b and US$6.4b had a median total CEO compensation of US$5.2m. This suggests that Jay Bray is paid more than the median for the industry. Furthermore, Jay Bray directly owns US$30m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2020 | 2019 | Proportion (2020) |
Salary | US$1.0m | US$1.0m | 11% |
Other | US$8.3m | US$6.2m | 89% |
Total Compensation | US$9.3m | US$7.2m | 100% |
Speaking on an industry level, salary and non-salary portions, both make up 50% each of the total remuneration. Mr. Cooper Group pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Mr. Cooper Group Inc.'s Growth Numbers
Over the last three years, Mr. Cooper Group Inc. has shrunk its earnings per share by 23% per year. Its revenue is up 83% over the last year.
The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Mr. Cooper Group Inc. Been A Good Investment?
We think that the total shareholder return of 98%, over three years, would leave most Mr. Cooper Group Inc. shareholders smiling. 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...
Some shareholders will be pleased by the relatively good results, however, the results could still be improved. EPS growth is still weak, and until that picks up, shareholders may find it hard to approve a pay rise for the CEO, since they are already paid above the average in their industry.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 2 warning signs for Mr. Cooper Group you should be aware of, and 1 of them doesn't sit too well with us.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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.
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