Yahoo Finance Here's Why Shareholders May Want To Be Cautious With Increasing Enova International, Inc.'s (NYSE:ENVA) CEO Pay Packet
Key Insights
Enova International's Annual General Meeting to take place on 8th of May
Total pay for CEO David Fisher includes US$956.7k salary
The overall pay is 34% above the industry average
Over the past three years, Enova International's EPS fell by 22% and over the past three years, the total shareholder return was 74%
Enova International, Inc. (NYSE:ENVA) has exhibited strong share price growth in the past few years. However, its earnings growth has not kept up, suggesting that there may be something amiss. The upcoming AGM on 8th of May may be an opportunity for shareholders to bring up any concerns they may have for the board’s attention. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. From the data that we gathered, we think that shareholders should hold off on a raise on CEO compensation until performance starts to show some improvement.
View our latest analysis for Enova International
How Does Total Compensation For David Fisher Compare With Other Companies In The Industry?
According to our data, Enova International, Inc. has a market capitalization of US$1.6b, and paid its CEO total annual compensation worth US$9.9m over the year to December 2023. That's a fairly small increase of 6.4% over the previous year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$957k.
On comparing similar companies from the American Consumer Finance industry with market caps ranging from US$1.0b to US$3.2b, we found that the median CEO total compensation was US$7.4m. Accordingly, our analysis reveals that Enova International, Inc. pays David Fisher north of the industry median. Furthermore, David Fisher directly owns US$16m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$957k | US$926k | 10% |
Other | US$8.9m | US$8.4m | 90% |
Total Compensation | US$9.9m | US$9.3m | 100% |
On an industry level, roughly 15% of total compensation represents salary and 85% is other remuneration. In Enova International's case, non-salary compensation represents a greater slice of total remuneration, 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.
Enova International, Inc.'s Growth
Enova International, Inc. has reduced its earnings per share by 22% a year over the last three years. Its revenue is up 7.5% over the last year.
Few shareholders would be pleased to read that EPS have declined. The fairly low revenue growth fails to impress given that the EPS is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Enova International, Inc. Been A Good Investment?
Boasting a total shareholder return of 74% over three years, Enova International, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Although shareholders would be quite happy with the returns they have earned on their initial investment, earnings have failed to grow and this could mean returns may be hard to keep up. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 2 warning signs for Enova International that investors should look into moving forward.
Switching gears from Enova International, 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.
