Yahoo Finance Is WSP Global Inc.'s (TSE:WSP) CEO Overpaid Relative To Its Peers?
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Alexandre L'Heureux became the CEO of WSP Global Inc. (TSE:WSP) in 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for WSP Global
How Does Alexandre L'Heureux's Compensation Compare With Similar Sized Companies?
According to our data, WSP Global Inc. has a market capitalization of CA$7.6b, and pays its CEO total annual compensation worth CA$6.5m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at CA$1.1m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CA$5.2b to CA$16b. The median total CEO compensation was CA$5.9m.
That means Alexandre L'Heureux receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at WSP Global has changed from year to year.
Is WSP Global Inc. Growing?
Over the last three years WSP Global Inc. has grown its earnings per share (EPS) by an average of 11% per year (using a line of best fit). In the last year, its revenue is up 13%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has WSP Global Inc. Been A Good Investment?
Boasting a total shareholder return of 102% over three years, WSP Global Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Remuneration for Alexandre L'Heureux is close enough to the median pay for a CEO of a similar sized company .
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling WSP Global shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
