Key Insights

• UWM Holdings will host its Annual General Meeting on 4th of June
• Salary of US$600.0k is part of CEO Mat Ishbia's total remuneration
• The overall pay is comparable to the industry average
• Over the past three years, UWM Holdings' EPS fell by 87% and over the past three years, the total shareholder return was 4.8%

Performance at UWM Holdings Corporation (NYSE:UWMC) has been reasonably good and CEO Mat Ishbia has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 4th of June. We present our case of why we think CEO compensation looks fair.

How Does Total Compensation For Mat Ishbia Compare With Other Companies In The Industry?

At the time of writing, our data shows that UWM Holdings Corporation has a market capitalization of US$12b, and reported total annual CEO compensation of US$12m for the year to December 2023. Notably, that's an increase of 74% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$600k.

In comparison with other companies in the American Diversified Financial industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$12m. From this we gather that Mat Ishbia is paid around the median for CEOs in the industry. Furthermore, Mat Ishbia directly owns US$1.3m worth of shares in the company.

Speaking on an industry level, nearly 15% of total compensation represents salary, while the remainder of 85% is other remuneration. UWM Holdings has chosen to walk a path less trodden, opting to compensate its CEO with less of a traditional salary and more non-salary rewards over the last year. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at UWM Holdings Corporation's Growth Numbers

UWM Holdings Corporation has reduced its earnings per share by 87% a year over the last three years. In the last year, its revenue is up 16%.

The reduction in EPS, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 UWM Holdings Corporation Been A Good Investment?

UWM Holdings Corporation has not done too badly by shareholders, with a total return of 4.8%, over three years. It would be nice to see that metric improve in the future. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

In Summary...

UWM Holdings prefers rewarding its CEO through non-salary benefits. The overall company performance has been commendable, however there are still areas for improvement. Still, we think that until shareholders see an improvement in EPS growth, they may find it hard to justify a pay rise for the CEO.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for UWM Holdings 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.