Here's Why Shareholders Should Examine GoPro, Inc.'s (NASDAQ:GPRO) CEO Compensation Package More Closely

Key Insights

• GoPro will host its Annual General Meeting on 3rd of June
• CEO Nick Woodman's total compensation includes salary of US$850.0k
• The total compensation is 323% higher than the average for the industry
• GoPro's three-year loss to shareholders was 92% while its EPS was down 116% over the past three years

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GoPro, Inc. (NASDAQ:GPRO) has not performed well recently and CEO Nick Woodman will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 3rd of June. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.

View our latest analysis for GoPro

How Does Total Compensation For Nick Woodman Compare With Other Companies In The Industry?

At the time of writing, our data shows that GoPro, Inc. has a market capitalization of US$91m, and reported total annual CEO compensation of US$2.4m for the year to December 2024. That's a notable decrease of 58% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$850k.

In comparison with other companies in the American Consumer Durables industry with market capitalizations under US$200m, the reported median total CEO compensation was US$560k. Accordingly, our analysis reveals that GoPro, Inc. pays Nick Woodman north of the industry median. Furthermore, Nick Woodman directly owns US$15m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	US$850k	US$850k	36%
Other	US$1.5m	US$4.8m	64%
Total Compensation	US$2.4m	US$5.7m	100%

Speaking on an industry level, nearly 21% of total compensation represents salary, while the remainder of 79% is other remuneration. According to our research, GoPro has allocated a higher percentage of pay to salary in comparison to the wider industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

GoPro, Inc.'s Growth

Over the last three years, GoPro, Inc. has shrunk its earnings per share by 116% per year. Its revenue is down 21% over the previous year.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has GoPro, Inc. Been A Good Investment?

The return of -92% over three years would not have pleased GoPro, Inc. shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 3 warning signs for GoPro that investors should look into moving forward.

Switching gears from GoPro, 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.