Key Insights

• Modine Manufacturing to hold its Annual General Meeting on 15th of August
• CEO Neil Brinker's total compensation includes salary of US$1.01m
• The overall pay is comparable to the industry average
• Modine Manufacturing's EPS grew by 77% over the past three years while total shareholder return over the past three years was 606%

It would be hard to discount the role that CEO Neil Brinker has played in delivering the impressive results at Modine Manufacturing Company (NYSE:MOD) recently. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 15th of August. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Comparing Modine Manufacturing Company's CEO Compensation With The Industry

At the time of writing, our data shows that Modine Manufacturing Company has a market capitalization of US$5.0b, and reported total annual CEO compensation of US$8.5m for the year to March 2024. That's a notable increase of 76% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.0m.

On examining similar-sized companies in the American Auto Components industry with market capitalizations between US$4.0b and US$12b, we discovered that the median CEO total compensation of that group was US$8.5m. From this we gather that Neil Brinker is paid around the median for CEOs in the industry. Moreover, Neil Brinker also holds US$18m worth of Modine Manufacturing stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 12% of total compensation represents salary, while the remainder of 88% is other remuneration. There isn't a significant difference between Modine Manufacturing and the broader market, in terms of salary allocation in the overall compensation package. 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 Modine Manufacturing Company's Growth Numbers

Modine Manufacturing Company's earnings per share (EPS) grew 77% per year over the last three years. In the last year, its revenue is up 2.8%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Modine Manufacturing Company Been A Good Investment?

Most shareholders would probably be pleased with Modine Manufacturing Company for providing a total return of 606% 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...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for Modine Manufacturing that investors should be aware of in a dynamic business environment.

Switching gears from Modine Manufacturing, 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.