Key Insights

• World Acceptance's Annual General Meeting to take place on 21st of August
• CEO Ravin Prashad's total compensation includes salary of US$840.0k
• The total compensation is 70% less than the average for the industry
• World Acceptance's three-year loss to shareholders was 42% while its EPS grew by 0.4% over the past three years

Performance at World Acceptance Corporation (NASDAQ:WRLD) has been rather uninspiring recently and shareholders may be wondering how CEO Ravin Prashad plans to fix this. At the next AGM coming up on 21st of August, they can influence managerial decision making through voting on resolutions, including executive remuneration. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. In our opinion, CEO compensation does not look excessive and we discuss why.

Comparing World Acceptance Corporation's CEO Compensation With The Industry

According to our data, World Acceptance Corporation has a market capitalization of US$583m, and paid its CEO total annual compensation worth US$966k over the year to March 2024. This means that the compensation hasn't changed much from last year. We note that the salary portion, which stands at US$840.0k constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the American Consumer Finance industry with market caps ranging from US$200m to US$800m, we found that the median CEO total compensation was US$3.3m. This suggests that Ravin Prashad is paid below the industry median. Furthermore, Ravin Prashad directly owns US$13m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 16% of total compensation represents salary, while the remainder of 84% is other remuneration. World Acceptance is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at World Acceptance Corporation's Growth Numbers

Over the last three years, World Acceptance Corporation has not seen its earnings per share change much, though there is a slight positive movement. It saw its revenue drop 5.9% over the last year.

We would prefer it if there was revenue growth, but the modest EPS growth gives us some relief. It's hard to reach a conclusion about business performance right now. This may be one to watch. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has World Acceptance Corporation Been A Good Investment?

The return of -42% over three years would not have pleased World Acceptance Corporation shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The fact that shareholders have earned a negative share price return is certainly disconcerting. Perhaps the poor price performance may have something to do with the the fact that earnings per share growth has not been performing as strongly either. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board's judgement and decision-making is aligned with their expectations.

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. That's why we did some digging and identified 1 warning sign for World Acceptance that you should be aware of before investing.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.