Key Insights

• Westinghouse Air Brake Technologies' Annual General Meeting to take place on 16th of May

• Total pay for CEO Rafael Santana includes US$1.33m salary

• The overall pay is 32% above the industry average

• Over the past three years, Westinghouse Air Brake Technologies' EPS grew by 34% and over the past three years, the total shareholder return was 116%

CEO Rafael Santana has done a decent job of delivering relatively good performance at Westinghouse Air Brake Technologies Corporation (NYSE:WAB) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 16th of May. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Westinghouse Air Brake Technologies

Comparing Westinghouse Air Brake Technologies Corporation's CEO Compensation With The Industry

According to our data, Westinghouse Air Brake Technologies Corporation has a market capitalization of US$29b, and paid its CEO total annual compensation worth US$15m over the year to December 2023. Notably, that's an increase of 33% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.3m.

In comparison with other companies in the American Machinery industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$12m. Accordingly, our analysis reveals that Westinghouse Air Brake Technologies Corporation pays Rafael Santana north of the industry median. Furthermore, Rafael Santana directly owns US$21m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 15% of total compensation represents salary and 85% is other remuneration. Westinghouse Air Brake Technologies pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Westinghouse Air Brake Technologies Corporation's Growth Numbers

Westinghouse Air Brake Technologies Corporation has seen its earnings per share (EPS) increase by 34% a year over the past three years. It achieved revenue growth of 16% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. 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 Westinghouse Air Brake Technologies Corporation Been A Good Investment?

We think that the total shareholder return of 116%, over three years, would leave most Westinghouse Air Brake Technologies Corporation shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Westinghouse Air Brake Technologies that investors should look into moving forward.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.