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

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.

Has NRW Holdings Limited Been A Good Investment?

NRW Holdings Limited has served shareholders reasonably well, with a total return of 10% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for NRW Holdings that you should be aware of before investing.

Important note: NRW Holdings 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.

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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.