Increases to CEO Compensation Might Be Put On Hold For Now at Waste Management, Inc. (NYSE:WM)
Key Insights
Waste Management to hold its Annual General Meeting on 14th of May
Total pay for CEO Jim Fish includes US$1.39m salary
Total compensation is 72% above industry average
Over the past three years, Waste Management's EPS grew by 19% and over the past three years, the total shareholder return was 56%
Under the guidance of CEO Jim Fish, Waste Management, Inc. (NYSE:WM) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 14th of May. However, some shareholders may still want to keep CEO compensation within reason.
View our latest analysis for Waste Management
Comparing Waste Management, Inc.'s CEO Compensation With The Industry
Our data indicates that Waste Management, Inc. has a market capitalization of US$84b, and total annual CEO compensation was reported as US$15m for the year to December 2023. That's mostly flat as compared to the prior year's compensation. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.4m.
For comparison, other companies in the American Commercial Services industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$8.5m. Accordingly, our analysis reveals that Waste Management, Inc. pays Jim Fish north of the industry median. Moreover, Jim Fish also holds US$43m worth of Waste Management stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$1.4m | US$1.3m | 9% |
Other | US$13m | US$13m | 91% |
Total Compensation | US$15m | US$15m | 100% |
On an industry level, around 22% of total compensation represents salary and 78% is other remuneration. Waste Management sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Waste Management, Inc.'s Growth
Over the past three years, Waste Management, Inc. has seen its earnings per share (EPS) grow by 19% per year. Its revenue is up 3.8% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 Waste Management, Inc. Been A Good Investment?
Boasting a total shareholder return of 56% over three years, Waste Management, 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.
To Conclude...
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Waste Management that you should be aware of before investing.
Switching gears from Waste Management, 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.
