Werner Enterprises, Inc.'s (NASDAQ:WERN) CEO Might Not Expect Shareholders To Be So Generous This Year
Key Insights
Werner Enterprises' Annual General Meeting to take place on 14th of May
CEO Derek Leathers' total compensation includes salary of US$917.3k
Total compensation is similar to the industry average
Werner Enterprises' EPS declined by 22% over the past three years while total shareholder loss over the past three years was 21%
Shareholders will probably not be too impressed with the underwhelming results at Werner Enterprises, Inc. (NASDAQ:WERN) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 14th of May. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.
See our latest analysis for Werner Enterprises
How Does Total Compensation For Derek Leathers Compare With Other Companies In The Industry?
According to our data, Werner Enterprises, Inc. has a market capitalization of US$2.3b, and paid its CEO total annual compensation worth US$5.4m over the year to December 2023. That's mostly flat as compared to the prior year's compensation. We think total compensation is more important but our data shows that the CEO salary is lower, at US$917k.
In comparison with other companies in the American Transportation industry with market capitalizations ranging from US$1.0b to US$3.2b, the reported median CEO total compensation was US$5.4m. So it looks like Werner Enterprises compensates Derek Leathers in line with the median for the industry. Furthermore, Derek Leathers directly owns US$13m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$917k | US$838k | 17% |
Other | US$4.5m | US$4.6m | 83% |
Total Compensation | US$5.4m | US$5.5m | 100% |
On an industry level, around 15% of total compensation represents salary and 85% is other remuneration. It's interesting to note that Werner Enterprises pays out a greater portion of remuneration through salary, compared to the industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Werner Enterprises, Inc.'s Growth
Over the last three years, Werner Enterprises, Inc. has shrunk its earnings per share by 22% per year. It saw its revenue drop 4.1% over the last year.
The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Werner Enterprises, Inc. Been A Good Investment?
Since shareholders would have lost about 21% over three years, some Werner Enterprises, Inc. investors would surely be feeling negative emotions. So shareholders would probably want the company to be less generous with CEO compensation.
To Conclude...
Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.
CEO compensation can have a massive impact on performance, but it's just one element. We've identified 3 warning signs for Werner Enterprises 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.
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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.
