Wisr Limited's (ASX:WZR) CEO Compensation Is Looking A Bit Stretched At The Moment
Shareholders of Wisr Limited (ASX:WZR) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 23 November 2022. They could also influence management through voting on resolutions such as executive remuneration. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.
See our latest analysis for Wisr
How Does Total Compensation For Anthony Nantes Compare With Other Companies In The Industry?
According to our data, Wisr Limited has a market capitalization of AU$106m, and paid its CEO total annual compensation worth AU$580k over the year to June 2022. Notably, that's an increase of 9.0% over the year before. Notably, the salary which is AU$441.7k, represents most of the total compensation being paid.
For comparison, other companies in the industry with market capitalizations below AU$295m, reported a median total CEO compensation of AU$153k. Accordingly, our analysis reveals that Wisr Limited pays Anthony Nantes north of the industry median. Furthermore, Anthony Nantes directly owns AU$4.5m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2022 | 2021 | Proportion (2022) |
Salary | AU$442k | AU$290k | 76% |
Other | AU$139k | AU$243k | 24% |
Total Compensation | AU$580k | AU$533k | 100% |
On an industry level, around 45% of total compensation represents salary and 55% is other remuneration. It's interesting to note that Wisr pays out a greater portion of remuneration through salary, compared to the industry. 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.
A Look at Wisr Limited's Growth Numbers
Wisr Limited has seen its earnings per share (EPS) increase by 15% a year over the past three years. In the last year, its revenue is up 108%.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Wisr Limited Been A Good Investment?
With a total shareholder return of -42% over three years, Wisr Limited shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would be keen to know what's holding the stock back when earnings have grown. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Wisr that investors should be aware of in a dynamic business environment.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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