Key Insights

• WSFS Financial to hold its Annual General Meeting on 16th of May

• Salary of US$891.7k is part of CEO Rodger Levenson's total remuneration

• The overall pay is comparable to the industry average

• Over the past three years, WSFS Financial's EPS grew by 10% and over the past three years, the total loss to shareholders 7.8%

In the past three years, shareholders of WSFS Financial Corporation (NASDAQ:WSFS) have seen a loss on their investment. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 16th of May could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for WSFS Financial

Comparing WSFS Financial Corporation's CEO Compensation With The Industry

At the time of writing, our data shows that WSFS Financial Corporation has a market capitalization of US$2.8b, and reported total annual CEO compensation of US$3.9m for the year to December 2023. We note that's a decrease of 17% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$892k.

In comparison with other companies in the American Banks industry with market capitalizations ranging from US$2.0b to US$6.4b, the reported median CEO total compensation was US$4.6m. So it looks like WSFS Financial compensates Rodger Levenson in line with the median for the industry. What's more, Rodger Levenson holds US$6.7m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 45% of total compensation out of all the companies we analyzed, while other remuneration made up 55% of the pie. In WSFS Financial's case, non-salary compensation represents a greater slice of total remuneration, in comparison 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.

WSFS Financial Corporation's Growth

WSFS Financial Corporation has seen its earnings per share (EPS) increase by 10% a year over the past three years. It achieved revenue growth of 3.8% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has WSFS Financial Corporation Been A Good Investment?

With a three year total loss of 7.8% for the shareholders, WSFS Financial Corporation would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would be keen to know what's holding the stock back when earnings have grown. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

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 1 warning sign for WSFS Financial that investors should think about before committing capital to this stock.

Switching gears from WSFS Financial, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.