Key Insights

• Euronet Worldwide to hold its Annual General Meeting on 16th of May
• Total pay for CEO Mike Brown includes US$850.0k salary
• The overall pay is 46% above the industry average
• Euronet Worldwide's three-year loss to shareholders was 19% while its EPS grew by 55% over the past three years

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 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.

How Does Total Compensation For Mike Brown Compare With Other Companies In The Industry?

Our data indicates that Euronet Worldwide, Inc. has a market capitalization of US$5.2b, and total annual CEO compensation was reported as US$14m for the year to December 2023. This means that the compensation hasn't changed much from last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$850k.

For comparison, other companies in the American Diversified Financial industry with market capitalizations ranging between US$4.0b and US$12b had a median total CEO compensation of US$9.5m. Accordingly, our analysis reveals that Euronet Worldwide, Inc. pays Mike Brown north of the industry median. What's more, Mike Brown holds US$233m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 15% of total compensation out of all the companies we analyzed, while other remuneration made up 85% of the pie. It's interesting to note that Euronet Worldwide allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked 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 also good to see modest revenue growth, suggesting the underlying business is healthy. 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?

Given the total shareholder loss of 19% over three years, many shareholders in Euronet Worldwide, Inc. are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. 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. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Euronet Worldwide.

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.

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.