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Here's Why It's Unlikely That ManpowerGroup Inc.'s (NYSE:MAN) CEO Will See A Pay Rise This Year
Key Insights
- ManpowerGroup to hold its Annual General Meeting on 2nd of May
- Salary of US$1.30m is part of CEO Jonas Prising's total remuneration
- The total compensation is 129% higher than the average for the industry
- ManpowerGroup's EPS declined by 32% over the past three years while total shareholder loss over the past three years was 49%
Shareholders will probably not be too impressed with the underwhelming results at ManpowerGroup Inc. (NYSE:MAN) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 2nd of May. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. The data we present below explains why we think CEO compensation is not consistent with recent performance.
Check out our latest analysis for ManpowerGroup
Comparing ManpowerGroup Inc.'s CEO Compensation With The Industry
According to our data, ManpowerGroup Inc. has a market capitalization of US$2.0b, and paid its CEO total annual compensation worth US$13m over the year to December 2024. That's mostly flat as compared to the prior year's compensation. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.3m.
On examining similar-sized companies in the American Professional Services industry with market capitalizations between US$1.0b and US$3.2b, we discovered that the median CEO total compensation of that group was US$5.7m. Hence, we can conclude that Jonas Prising is remunerated higher than the industry median. What's more, Jonas Prising holds US$20m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$1.3m | US$1.3m | 10% |
| Other | US$12m | US$11m | 90% |
| Total Compensation | US$13m | US$13m | 100% |
On an industry level, around 12% of total compensation represents salary and 88% is other remuneration. ManpowerGroup 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.
A Look at ManpowerGroup Inc.'s Growth Numbers
Over the last three years, ManpowerGroup Inc. has shrunk its earnings per share by 32% per year. Its revenue is down 5.5% over the previous year.
Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 ManpowerGroup Inc. Been A Good Investment?
The return of -49% over three years would not have pleased ManpowerGroup Inc. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.
In Summary...
Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.
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 2 warning signs for ManpowerGroup (of which 1 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.
Switching gears from ManpowerGroup, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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.