Yahoo Finance Euronet Worldwide, Inc.'s (NASDAQ:EEFT) CEO Compensation Is Looking A Bit Stretched At The Moment
Key Insights
Euronet Worldwide's Annual General Meeting to take place on 16th of May
Total pay for CEO Mike Brown includes US$850.0k salary
The overall pay is 46% above the industry average
Over the past three years, Euronet Worldwide's EPS grew by 55% and over the past three years, the total loss to shareholders 19%
The underwhelming share price performance of Euronet Worldwide, Inc. (NASDAQ:EEFT) in the past three years would have disappointed many shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 16th of May. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.
Check out our latest analysis for Euronet Worldwide
How Does Total Compensation For Mike Brown Compare With Other Companies In The Industry?
At the time of writing, our data shows that Euronet Worldwide, Inc. has a market capitalization of US$5.2b, and reported total annual CEO compensation of US$14m for 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$850k.
On examining similar-sized companies in the American Diversified Financial industry with market capitalizations between US$4.0b and US$12b, we discovered that the median CEO total compensation of that group was US$9.5m. This suggests that Mike Brown is paid more than the median for the industry. Moreover, Mike Brown also holds US$233m worth of Euronet Worldwide stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$850k | US$850k | 6% |
Other | US$13m | US$13m | 94% |
Total Compensation | US$14m | US$14m | 100% |
On an industry level, roughly 15% of total compensation represents salary and 85% is other remuneration. Euronet Worldwide sets aside a smaller share of compensation for salary, in comparison to the overall 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 Euronet Worldwide, Inc.'s Growth Numbers
Euronet Worldwide, Inc.'s earnings per share (EPS) grew 55% per year over the last three years. It achieved revenue growth of 9.6% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 Euronet Worldwide, Inc. Been A Good Investment?
With a three year total loss of 19% for the shareholders, Euronet Worldwide, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.
To Conclude...
Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.
Shareholders may want to check for free if Euronet Worldwide insiders are buying or selling shares.
Important note: Euronet Worldwide 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.
