Key Insights

• Otis Worldwide will host its Annual General Meeting on 16th of May

• Salary of US$1.37m is part of CEO Judy Marks's total remuneration

• Total compensation is 36% above industry average

• Otis Worldwide's EPS grew by 13% over the past three years while total shareholder return over the past three years was 30%

Under the guidance of CEO Judy Marks, Otis Worldwide Corporation (NYSE:OTIS) 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 16th of May. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Otis Worldwide

How Does Total Compensation For Judy Marks Compare With Other Companies In The Industry?

At the time of writing, our data shows that Otis Worldwide Corporation has a market capitalization of US$38b, and reported total annual CEO compensation of US$16m for the year to December 2023. Notably, that's an increase of 10.0% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.4m.

For comparison, other companies in the American Machinery industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$12m. This suggests that Judy Marks is paid more than the median for the industry. Moreover, Judy Marks also holds US$15m worth of Otis Worldwide stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 15% of total compensation out of all the companies we analyzed, while other remuneration made up 85% of the pie. Otis Worldwide 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.

Otis Worldwide Corporation's Growth

Otis Worldwide Corporation's earnings per share (EPS) grew 13% per year over the last three years. It achieved revenue growth of 5.0% 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. 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 Otis Worldwide Corporation Been A Good Investment?

Otis Worldwide Corporation has generated a total shareholder return of 30% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay 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.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 4 warning signs for Otis Worldwide (of which 1 is potentially serious!) that you should know about in order to have a holistic understanding of the stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.