Key Insights

• Brunswick to hold its Annual General Meeting on 1st of May
• Salary of US$1.16m is part of CEO Dave Foulkes's total remuneration
• The overall pay is comparable to the industry average
• Over the past three years, Brunswick's EPS fell by 1.6% and over the past three years, the total loss to shareholders 20%

Brunswick Corporation (NYSE:BC) has not performed well recently and CEO Dave Foulkes will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 1st of May. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.

How Does Total Compensation For Dave Foulkes Compare With Other Companies In The Industry?

According to our data, Brunswick Corporation has a market capitalization of US$5.4b, and paid its CEO total annual compensation worth US$11m over the year to December 2023. That's a notable increase of 14% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.2m.

In comparison with other companies in the American Leisure industry with market capitalizations ranging from US$4.0b to US$12b, the reported median CEO total compensation was US$11m. This suggests that Brunswick remunerates its CEO largely in line with the industry average. Furthermore, Dave Foulkes directly owns US$10m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 26% of total compensation out of all the companies we analyzed, while other remuneration made up 74% of the pie. In Brunswick's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Brunswick Corporation's Growth

Brunswick Corporation has reduced its earnings per share by 1.6% a year over the last three years. It saw its revenue drop 12% over the last year.

The lack of EPS growth is certainly uninspiring. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Brunswick Corporation Been A Good Investment?

With a three year total loss of 20% for the shareholders, Brunswick Corporation would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 2 warning signs for Brunswick that investors should look into moving forward.

Switching gears from Brunswick, 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.

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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.