Key Insights

• Twin Disc will host its Annual General Meeting on 26th of October
• CEO John Batten's total compensation includes salary of US$648.4k
• Total compensation is similar to the industry average
• Twin Disc's EPS grew by 91% over the past three years while total shareholder return over the past three years was 148%

We have been pretty impressed with the performance at Twin Disc, Incorporated (NASDAQ:TWIN) recently and CEO John Batten deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 26th of October. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

See our latest analysis for Twin Disc

How Does Total Compensation For John Batten Compare With Other Companies In The Industry?

At the time of writing, our data shows that Twin Disc, Incorporated has a market capitalization of US$187m, and reported total annual CEO compensation of US$2.3m for the year to June 2023. That's slightly lower by 6.9% over the previous year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$648k.

For comparison, other companies in the American Machinery industry with market capitalizations ranging between US$100m and US$400m had a median total CEO compensation of US$2.1m. From this we gather that John Batten is paid around the median for CEOs in the industry. Moreover, John Batten also holds US$34m worth of Twin Disc stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 16% of total compensation out of all the companies we analyzed, while other remuneration made up 84% of the pie. According to our research, Twin Disc has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Twin Disc, Incorporated's Growth Numbers

Twin Disc, Incorporated has seen its earnings per share (EPS) increase by 91% a year over the past three years. It achieved revenue growth of 14% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Twin Disc, Incorporated Been A Good Investment?

Most shareholders would probably be pleased with Twin Disc, Incorporated for providing a total return of 148% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

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 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 Twin Disc 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.