Here's Why It's Unlikely That Brunswick Corporation's (NYSE:BC) CEO Will See A Pay Rise This Year

Key Insights

• Brunswick will host its Annual General Meeting on 1st of May

• CEO Dave Foulkes' total compensation includes salary of US$1.16m

• Total compensation is similar to the industry average

• Brunswick's three-year loss to shareholders was 20% while its EPS was down 1.6% over the past three years

The results at Brunswick Corporation (NYSE:BC) have been quite disappointing recently and CEO Dave Foulkes bears some responsibility for this. At the upcoming AGM on 1st of May, shareholders can hear from the board including their plans for turning around performance. 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. The data we present below explains why we think CEO compensation is not consistent with recent performance.

View our latest analysis for Brunswick

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

Our data indicates that Brunswick Corporation has a market capitalization of US$5.4b, and total annual CEO compensation was reported as US$11m for the year to December 2023. We note that's an increase of 14% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.2m.

On comparing similar companies from the American Leisure industry with market caps ranging from US$4.0b to US$12b, we found that the median CEO total compensation was US$11m. So it looks like Brunswick compensates Dave Foulkes in line with the median for the industry. 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. Brunswick sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Brunswick Corporation's Growth Numbers

Brunswick Corporation has reduced its earnings per share by 1.6% a year over the last three years. In the last year, its revenue is down 12%.

A lack of EPS improvement is not good to see. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Brunswick Corporation Been A Good Investment?

Given the total shareholder loss of 20% over three years, many shareholders in Brunswick Corporation are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a 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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 2 warning signs for Brunswick that investors should be aware of in a dynamic business environment.

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.