Yahoo Finance We Discuss Why Steelcase Inc.'s (NYSE:SCS) CEO Will Find It Hard To Get A Pay Rise From Shareholders This Year
Key Insights
Steelcase's Annual General Meeting to take place on 10th of July
Total pay for CEO Sara Armbruster includes US$966.3k salary
Total compensation is similar to the industry average
Steelcase's total shareholder return over the past three years was 2.2% while its EPS grew by 36% over the past three years
CEO Sara Armbruster has done a decent job of delivering relatively good performance at Steelcase Inc. (NYSE:SCS) recently. As shareholders go into the upcoming AGM on 10th of July, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. We present our case of why we think CEO compensation looks fair.
See our latest analysis for Steelcase
Comparing Steelcase Inc.'s CEO Compensation With The Industry
Our data indicates that Steelcase Inc. has a market capitalization of US$1.5b, and total annual CEO compensation was reported as US$6.2m for the year to February 2024. We note that's an increase of 48% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$966k.
For comparison, other companies in the American Commercial Services industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$5.8m. So it looks like Steelcase compensates Sara Armbruster in line with the median for the industry. Furthermore, Sara Armbruster directly owns US$3.7m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2024 | 2023 | Proportion (2024) |
Salary | US$966k | US$900k | 16% |
Other | US$5.2m | US$3.3m | 84% |
Total Compensation | US$6.2m | US$4.2m | 100% |
On an industry level, around 21% of total compensation represents salary and 79% is other remuneration. Steelcase pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Steelcase Inc.'s Growth
Over the past three years, Steelcase Inc. has seen its earnings per share (EPS) grow by 36% per year. Its revenue is down 3.3% over the previous year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Steelcase Inc. Been A Good Investment?
Steelcase Inc. has generated a total shareholder return of 2.2% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.
In Summary...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.
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 Steelcase that investors should think about before committing capital to this stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
