A Quick Analysis On Wingara's (ASX:WNR) CEO Salary

The CEO of Wingara AG Limited (ASX:WNR) is Gavin Xing, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Wingara.

See our latest analysis for Wingara

Comparing Wingara AG Limited's CEO Compensation With the industry

At the time of writing, our data shows that Wingara AG Limited has a market capitalization of AU$27m, and reported total annual CEO compensation of AU$398k for the year to March 2020. We note that's an increase of 27% above last year. We note that the salary portion, which stands at AU$266.5k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the industry with market capitalizations below AU$279m, we found that the median total CEO compensation was AU$468k. From this we gather that Gavin Xing is paid around the median for CEOs in the industry. Furthermore, Gavin Xing directly owns AU$2.6m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 57% of total compensation represents salary, while the remainder of 43% is other remuneration. Wingara is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Wingara AG Limited's Growth

Wingara AG Limited's earnings per share (EPS) grew 58% per year over the last three years. Its revenue is up 20% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Wingara AG Limited Been A Good Investment?

Given the total shareholder loss of 14% over three years, many shareholders in Wingara AG Limited are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As we touched on above, Wingara AG Limited is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Meanwhile, shareholder returns paint a sorry picture for the company, finishing in the red over the last three years. But earnings growth is moving in a favorable direction, certainly a positive sign. It's tough for us to say CEO compensation is too generous when earnings growth is positive, but negative investor returns will irk shareholders and reduce any chances of a raise.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 3 warning signs for Wingara (of which 1 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Important note: Wingara is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

This article by Simply Wall St is general in nature. 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.

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