It would be hard to discount the role that CEO Brad Soultz has played in delivering the impressive results at WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) recently. Shareholders will have this at the front of their minds in the upcoming AGM on 11 June 2021. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is not extravagant.
See our latest analysis for WillScot Mobile Mini Holdings
How Does Total Compensation For Brad Soultz Compare With Other Companies In The Industry?
According to our data, WillScot Mobile Mini Holdings Corp. has a market capitalization of US$6.4b, and paid its CEO total annual compensation worth US$6.1m over the year to December 2020. That's a notable increase of 33% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$797k.
For comparison, other companies in the same industry with market capitalizations ranging between US$4.0b and US$12b had a median total CEO compensation of US$7.5m. From this we gather that Brad Soultz is paid around the median for CEOs in the industry. Furthermore, Brad Soultz directly owns US$5.8m worth of shares in the company, implying that they are deeply invested in the company's success.
|
Component |
2020 |
2019 |
Proportion (2020) |
|
Salary |
US$797k |
US$715k |
13% |
|
Other |
US$5.3m |
US$3.9m |
87% |
|
Total Compensation |
US$6.1m |
US$4.6m |
100% |
On an industry level, around 22% of total compensation represents salary and 78% is other remuneration. WillScot Mobile Mini Holdings pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
WillScot Mobile Mini Holdings Corp.'s Growth
WillScot Mobile Mini Holdings Corp.'s earnings per share (EPS) grew 115% per year over the last three years. It achieved revenue growth of 44% over the last year.
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 WillScot Mobile Mini Holdings Corp. Been A Good Investment?
Most shareholders would probably be pleased with WillScot Mobile Mini Holdings Corp. for providing a total return of 133% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
To Conclude...
Given the improved performance, shareholders may be more forgiving of CEO compensation in the upcoming AGM. Seeing that earnings growth and share price performance seems to be on the right path, the more pressing focus for shareholders at the AGM may be how the board and management plans to turn the company into a sustainably profitable one.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 1 warning sign for WillScot Mobile Mini Holdings that investors should look into moving forward.
Important note: WillScot Mobile Mini Holdings 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. 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.
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The Compensation For WillScot Mobile Mini Holdings Corp.'s (NASDAQ:WSC) CEO Looks Deserved And Here's Why - Yahoo Finance
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