Key Insights

• Oppenheimer Holdings will host its Annual General Meeting on 6th of May
• Salary of US$500.0k is part of CEO Bud Lowenthal's total remuneration
• Total compensation is 231% above industry average
• Oppenheimer Holdings' EPS declined by 31% over the past three years while total shareholder loss over the past three years was 13%

Oppenheimer Holdings Inc. (NYSE:OPY) has not performed well recently and CEO Bud Lowenthal will probably need to up their game. At the upcoming AGM on 6th of May, shareholders can hear from the board including their plans for turning around performance. 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.

How Does Total Compensation For Bud Lowenthal Compare With Other Companies In The Industry?

At the time of writing, our data shows that Oppenheimer Holdings Inc. has a market capitalization of US$419m, and reported total annual CEO compensation of US$4.8m for the year to December 2023. Notably, that's a decrease of 43% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$500k.

In comparison with other companies in the American Capital Markets industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$1.4m. Hence, we can conclude that Bud Lowenthal is remunerated higher than the industry median. Furthermore, Bud Lowenthal directly owns US$136m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 10% of total compensation represents salary and 90% is other remuneration. Oppenheimer Holdings is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Oppenheimer Holdings Inc.'s Growth Numbers

Oppenheimer Holdings Inc. has reduced its earnings per share by 31% a year over the last three years. Its revenue is up 6.4% over the last year.

Overall this is not a very positive result for shareholders. The fairly low revenue growth fails to impress given that the EPS is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Oppenheimer Holdings Inc. Been A Good Investment?

Given the total shareholder loss of 13% over three years, many shareholders in Oppenheimer Holdings Inc. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.

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. That's why we did some digging and identified 2 warning signs for Oppenheimer Holdings that you should be aware of before investing.

Important note: Oppenheimer 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.