As many shareholders of Northwest Natural Holding Company (NYSE: NWN) knows, they haven’t made a profit on their investment in the past three years. What is concerning is that despite positive EPS growth, the stock price has not followed the trend of fundamentals. These are some of the concerns shareholders might want to raise at the next annual general meeting on May 27, 2021. They could also influence management by voting on resolutions such as executive compensation. We explain below why we think shareholders should be wary of approving a CEO raise at this time.
Check out our latest analysis for Northwest Natural Holding
Northwest Natural Holding Company CEO Compensation Comparison with Industry
According to our data, Northwest Natural Holding Company has a market capitalization of US $ 1.6 billion and paid its CEO a total annual compensation of US $ 3.8 million for the year until December 2020. It s This is notably a decrease of 10% compared to the previous year. While this analysis focuses on total compensation, it should be recognized that the salary portion is lower, valued at $ 743,000.
Looking at similar-sized companies in the industry with market capitalizations between US $ 1.0 billion and US $ 3.2 billion, we found that the median total compensation of CEOs in this group was $ 955,000. Americans. Therefore, we can conclude that David Anderson is paid above the industry median. In addition, David Anderson directly owns $ 5.9 million in company stock, which implies that they are deeply invested in the success of the company.
|Salary||US $ 743K||US $ 706K||19%|
|Other||3.1 million USD||3.5 million USD||81%|
|Total compensation||3.8 million USD||4.3 million USD||100%|
At the industry level, around 19% of total compensation is salary and 81% other compensation. There is no significant difference between Northwest Natural Holding and the broader market, in terms of the distribution of salaries across compensation. If non-salary compensation dominates total compensation, it is an indicator that the executive’s salary is linked to the performance of the company.
A look at Northwest Natural Holding Company’s growth figures
Northwest Natural Holding Company‘s earnings per share (EPS) have grown 1.7% per year over the past three years. It achieved 7.8% revenue growth over the past year.
We’re not particularly impressed with the revenue growth, but we’re happy with the modest EPS growth. Considering these factors, we would say the performance was pretty decent, but not amazing. Stepping away from the current shape for a second, it might be important to check out this free visual representation of what analysts expect for the future.
Was Northwest Natural Holding Company a Good Investment?
With a total loss of 0.07% over three years for shareholders, Northwest Natural Holding Company would certainly have disgruntled shareholders. Therefore, it could be inconvenient for shareholders if the CEO is paid generously.
The fact that shareholders have suffered a loss in the value of their shares in recent years is certainly disconcerting. The fact that the stock price has not risen in line with profits may indicate that other issues may be affecting this stock. Shareholders would like to know what holds the stock back when earnings have risen. At the next AGM, shareholders will have the opportunity to discuss any issues with the board, including those related to CEO compensation, and assess whether the board’s plan is likely to improve performance in the future.
CEO compensation is an important area to watch, but we also need to pay attention to other attributes of the company. In our study, we found 2 warning signs for Northwest Natural Holding you should be aware of that, and one of them doesn’t suit us very well.
Of course, you might find a fantastic investment looking at a different set of stocks. So take a look at this free list of interesting companies.
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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take into account your goals or your financial situation. We aim to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative information. Simply Wall St has no position in the mentioned stocks.
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