Yahoo Finance Broadwind, Inc.'s (NASDAQ:BWEN) CEO Compensation Is Looking A Bit Stretched At The Moment
Key Insights
Broadwind's Annual General Meeting to take place on 16th of May
Total pay for CEO Eric Blashford includes US$435.4k salary
The overall pay is 99% above the industry average
Over the past three years, Broadwind's EPS fell by 6.7% and over the past three years, the total loss to shareholders 50%
The underwhelming share price performance of Broadwind, Inc. (NASDAQ:BWEN) in the past three years would have disappointed many shareholders. Per share earnings growth is also lacking, despite revenue growth. Shareholders will have a chance to take their concerns to the board at the next AGM on 16th of May and vote on resolutions including executive compensation, which studies show may have an impact on company performance. Here's our take on why we think shareholders might be hesitant about approving a raise at the moment.
Check out our latest analysis for Broadwind
Comparing Broadwind, Inc.'s CEO Compensation With The Industry
At the time of writing, our data shows that Broadwind, Inc. has a market capitalization of US$47m, and reported total annual CEO compensation of US$1.2m for the year to December 2023. Notably, that's an increase of 56% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$435k.
On comparing similar-sized companies in the American Electrical industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$611k. Hence, we can conclude that Eric Blashford is remunerated higher than the industry median. Moreover, Eric Blashford also holds US$812k worth of Broadwind stock directly under their own name.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$435k | US$428k | 36% |
Other | US$781k | US$352k | 64% |
Total Compensation | US$1.2m | US$780k | 100% |
Talking in terms of the industry, salary represented approximately 22% of total compensation out of all the companies we analyzed, while other remuneration made up 78% of the pie. According to our research, Broadwind 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.
Broadwind, Inc.'s Growth
Broadwind, Inc. has reduced its earnings per share by 6.7% a year over the last three years. In the last year, its revenue is up 15%.
Investors would be a bit wary of companies that have lower EPS But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Broadwind, Inc. Been A Good Investment?
Few Broadwind, Inc. shareholders would feel satisfied with the return of -50% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
The returns to shareholders is disappointing along with lack of earnings growth, which goes some way in explaining the poor returns. Shareholders will get the chance at the upcoming AGM to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 4 warning signs for Broadwind you should be aware of, and 2 of them are a bit unpleasant.
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.
