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Here's Why WSP Global Inc.'s (TSE:WSP) CEO Compensation Is The Least Of Shareholders' Concerns

Simply Wall St · 05/01/2025 10:12

Key Insights

  • WSP Global will host its Annual General Meeting on 8th of May
  • Salary of CA$1.50m is part of CEO Alexandre L'Heureux's total remuneration
  • Total compensation is similar to the industry average
  • WSP Global's EPS grew by 8.7% over the past three years while total shareholder return over the past three years was 69%
We've discovered 1 warning sign about WSP Global. View them for free.

Under the guidance of CEO Alexandre L'Heureux, WSP Global Inc. (TSE:WSP) has performed reasonably well recently. As shareholders go into the upcoming AGM on 8th of May, 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 WSP Global

Comparing WSP Global Inc.'s CEO Compensation With The Industry

Our data indicates that WSP Global Inc. has a market capitalization of CA$32b, and total annual CEO compensation was reported as CA$14m for the year to December 2024. That's a notable increase of 17% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$1.5m.

On comparing similar companies in the Canadian Construction industry with market capitalizations above CA$11b, we found that the median total CEO compensation was CA$14m. From this we gather that Alexandre L'Heureux is paid around the median for CEOs in the industry. What's more, Alexandre L'Heureux holds CA$9.7m 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 CA$1.5m CA$1.4m 10%
Other CA$13m CA$11m 90%
Total Compensation CA$14m CA$12m 100%

Talking in terms of the industry, salary represented approximately 18% of total compensation out of all the companies we analyzed, while other remuneration made up 82% of the pie. WSP Global pays a modest slice of remuneration through salary, as compared 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
TSX:WSP CEO Compensation May 1st 2025

WSP Global Inc.'s Growth

WSP Global Inc. has seen its earnings per share (EPS) increase by 8.7% a year over the past three years. Its revenue is up 12% over the last year.

We think the revenue growth is good. And the improvement in EPSis modest but respectable. So while performance isn't amazing, we think it really does seem quite respectable. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has WSP Global Inc. Been A Good Investment?

Most shareholders would probably be pleased with WSP Global Inc. for providing a total return of 69% 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.

To Conclude...

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 CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for WSP Global that you should be aware of before investing.

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.