Key Insights

• Helios Technologies to hold its Annual General Meeting on 6th of June
• CEO Joe Matosevic's total compensation includes salary of US$950.0k
• Total compensation is similar to the industry average
• Helios Technologies' EPS declined by 16% over the past three years while total shareholder loss over the past three years was 32%

The results at Helios Technologies, Inc. (NYSE:HLIO) have been quite disappointing recently and CEO Joe Matosevic bears some responsibility for this. At the upcoming AGM on 6th of June, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.

How Does Total Compensation For Joe Matosevic Compare With Other Companies In The Industry?

At the time of writing, our data shows that Helios Technologies, Inc. has a market capitalization of US$1.6b, and reported total annual CEO compensation of US$5.7m for the year to December 2023. We note that's a decrease of 13% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$950k.

On comparing similar companies from the American Machinery industry with market caps ranging from US$1.0b to US$3.2b, we found that the median CEO total compensation was US$5.6m. This suggests that Helios Technologies remunerates its CEO largely in line with the industry average. Moreover, Joe Matosevic also holds US$3.8m worth of Helios Technologies stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 15% of total compensation out of all the companies we analyzed, while other remuneration made up 85% of the pie. According to our research, Helios Technologies has allocated a higher percentage of pay to salary in comparison to the wider industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Helios Technologies, Inc.'s Growth Numbers

Over the last three years, Helios Technologies, Inc. has shrunk its earnings per share by 16% per year. Its revenue is down 2.8% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Helios Technologies, Inc. Been A Good Investment?

The return of -32% over three years would not have pleased Helios Technologies, Inc. shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 4 warning signs (and 1 which is significant) in Helios Technologies we think you should know about.

Important note: Helios Technologies 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.

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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.