Yahoo Finance WSP Global Inc.'s (TSE:WSP) CEO Looks Like They Deserve Their Pay Packet
Key Insights
WSP Global's Annual General Meeting to take place on 9th of May
Salary of CA$1.40m is part of CEO Alexandre L'Heureux's total remuneration
Total compensation is similar to the industry average
WSP Global's total shareholder return over the past three years was 73% while its EPS grew by 21% over the past three years
The performance at WSP Global Inc. (TSE:WSP) has been quite strong recently and CEO Alexandre L'Heureux has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 9th of May. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.
View our latest analysis for WSP Global
How Does Total Compensation For Alexandre L'Heureux Compare With Other Companies In The Industry?
Our data indicates that WSP Global Inc. has a market capitalization of CA$26b, and total annual CEO compensation was reported as CA$12m for the year to December 2023. That's a fairly small increase of 6.2% over the previous year. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$1.4m.
For comparison, other companies in the Canadian Construction industry with market capitalizations above CA$11b, reported a median total CEO compensation of CA$12m. So it looks like WSP Global compensates Alexandre L'Heureux in line with the median for the industry. What's more, Alexandre L'Heureux holds CA$8.7m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | CA$1.4m | CA$1.4m | 11% |
Other | CA$11m | CA$10m | 89% |
Total Compensation | CA$12m | CA$12m | 100% |
On an industry level, around 19% of total compensation represents salary and 81% is other remuneration. WSP Global 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 WSP Global Inc.'s Growth Numbers
WSP Global Inc. has seen its earnings per share (EPS) increase by 21% a year over the past three years. Its revenue is up 21% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 WSP Global Inc. Been A Good Investment?
Boasting a total shareholder return of 73% over three years, WSP Global Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
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 WSP Global that investors should be aware of in a dynamic business environment.
Switching gears from WSP Global, 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.
