CEO John Haley has done a decent job of delivering relatively good performance at Willis Towers Watson Public Limited Company (NASDAQ:WLTW) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 11 May 2021. However, some shareholders will still be cautious of paying the CEO excessively.
See our latest analysis for Willis Towers Watson
Comparing Willis Towers Watson Public Limited Company's CEO Compensation With the industry
Our data indicates that Willis Towers Watson Public Limited Company has a market capitalization of US$33b, and total annual CEO compensation was reported as US$21m for the year to December 2020. That's a notable increase of 11% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.2m.
On comparing similar companies in the industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$11m. Accordingly, our analysis reveals that Willis Towers Watson Public Limited Company pays John Haley north of the industry median. Furthermore, John Haley directly owns US$33m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | US$1.2m | US$1.2m | 6% |
| Other | US$20m | US$17m | 94% |
| Total Compensation | US$21m | US$19m | 100% |
On an industry level, around 18% of total compensation represents salary and 82% is other remuneration. Willis Towers Watson sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Willis Towers Watson Public Limited Company's Growth
Over the past three years, Willis Towers Watson Public Limited Company has seen its earnings per share (EPS) grow by 50% per year. It achieved revenue growth of 3.1% 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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Willis Towers Watson Public Limited Company Been A Good Investment?
Most shareholders would probably be pleased with Willis Towers Watson Public Limited Company for providing a total return of 80% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.