Increases to NRW Holdings Limited's (ASX:NWH) CEO Compensation Might Cool off for now

In This Article:

Key Insights

  • NRW Holdings to hold its Annual General Meeting on 29th of November

  • CEO Jules Pemberton's total compensation includes salary of AU$1.29m

  • The overall pay is 88% above the industry average

  • NRW Holdings' EPS grew by 1.4% over the past three years while total shareholder return over the past three years was 10%

Performance at NRW Holdings Limited (ASX:NWH) has been reasonably good and CEO Jules Pemberton has done a decent job of steering the company in the right direction. 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 29th of November. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for NRW Holdings

How Does Total Compensation For Jules Pemberton Compare With Other Companies In The Industry?

According to our data, NRW Holdings Limited has a market capitalization of AU$1.1b, and paid its CEO total annual compensation worth AU$3.2m over the year to June 2023. That is, the compensation was roughly the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at AU$1.3m.

For comparison, other companies in the Australian Construction industry with market capitalizations ranging between AU$609m and AU$2.4b had a median total CEO compensation of AU$1.7m. Hence, we can conclude that Jules Pemberton is remunerated higher than the industry median. Furthermore, Jules Pemberton directly owns AU$25m worth of shares in the company, implying that they are deeply invested in the company's success.

Component

2023

2022

Proportion (2023)

Salary

AU$1.3m

AU$1.2m

40%

Other

AU$1.9m

AU$2.0m

60%

Total Compensation

AU$3.2m

AU$3.2m

100%

On an industry level, around 63% of total compensation represents salary and 37% is other remuneration. It's interesting to note that NRW Holdings allocates a smaller portion of compensation to salary 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.

ceo-compensation
ASX:NWH CEO Compensation November 22nd 2023

NRW Holdings Limited's Growth

NRW Holdings Limited's earnings per share (EPS) grew 1.4% per year over the last three years. In the last year, its revenue is up 13%.

We think the revenue growth is good. And the modest growth in EPS isn't bad, either. So while performance isn't amazing, we think it really does seem quite respectable. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.