Yahoo Finance Shareholders Will Probably Hold Off On Increasing Foley Wines Limited's (NZSE:FWL) CEO Compensation For The Time Being
In the past three years, the share price of Foley Wines Limited (NZSE:FWL) has struggled to generate growth for its shareholders. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 16 November 2022. They could also influence management through voting on resolutions such as executive remuneration. 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 Foley Wines
How Does Total Compensation For Mark Turnbull Compare With Other Companies In The Industry?
Our data indicates that Foley Wines Limited has a market capitalization of NZ$89m, and total annual CEO compensation was reported as NZ$950k for the year to June 2022. We note that's an increase of 12% above last year. In particular, the salary of NZ$550.0k, makes up a fairly large portion of the total compensation being paid to the CEO.
For comparison, other companies in the industry with market capitalizations below NZ$339m, reported a median total CEO compensation of NZ$660k. Hence, we can conclude that Mark Turnbull is remunerated higher than the industry median.
Component | 2022 | 2021 | Proportion (2022) |
Salary | NZ$550k | NZ$550k | 58% |
Other | NZ$400k | NZ$300k | 42% |
Total Compensation | NZ$950k | NZ$850k | 100% |
On an industry level, roughly 66% of total compensation represents salary and 34% is other remuneration. Foley Wines sets aside a smaller share of compensation for 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 Foley Wines Limited's Growth Numbers
Foley Wines Limited's earnings per share (EPS) grew 17% per year over the last three years. The trailing twelve months of revenue was pretty much the same as the prior period.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Foley Wines Limited Been A Good Investment?
With a three year total loss of 11% for the shareholders, Foley Wines Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
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 probably be keen to find out what are the other factors could be weighing down the stock. 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.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Foley Wines that investors should be aware of in a dynamic business environment.
Switching gears from Foley Wines, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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