Posted: 02/11/2025 03:09 am
Leslie's, Inc. (NASDAQ: LESL), a leader in the U.S. pool and spa care industry, has captured recent attention not just for its operational activities, but also for its compensation patterns. This scrutiny comes against a backdrop of turbulent financial results reported for the first quarter of fiscal 2025 and ongoing shareholder concerns.
On February 6, 2025, Leslie's reported a quarterly loss of $0.22 per share, slightly above the Zacks Consensus Estimate of a $0.21 loss, continuing a trend of operational challenges from previous years[1]. This financial performance frames the current compensation narrative, showing a possible disconnect between executive pay and company performance.
Former Chief Executive Officer Michael R. Egeck's compensation in 2024 was particularly noteworthy. Totaling $3,292,618, his compensation package included a base salary of $965,865 and a substantial stock award of $1,800,046[2]. This marked a significant increase from the compensation figures of executives in previous years, such as Steven M. Weddell, who received $1,282,398 in 2023, with $690,132 as a stock award[3].
The variation in compensation raises questions in light of the company's market struggles. As of the latest data, Leslie's stock price stands at $1.605, a stark contrast to its 52-week high of $8.21. The stock's decline mirrors the company's broader strategic challenges[4].
Adding to the complexity, Leslie’s faces legal scrutiny. In December 2024, Bragar Eagel & Squire, P.C. announced an investigation into potential fiduciary breaches by Leslie's board, highlighting ongoing shareholder discontent[5]. While compensation packages often aim to attract top talent, the alignment—or lack thereof—between these packages and shareholder value remains a critical discussion point.
Leslie's financial reports and shareholder concerns underscore the intricate relationship between executive compensation and corporate governance. For a company painted as an industry leader, navigating these waters effectively could determine its future trajectory.
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1. Leslie's, Inc. (LESL) Q1 2025 Earnings Conference Call Transcript, Seeking Alpha, [link](https://seekingalpha.com/article/4755885-leslies-inc-lesl-q1-2025-earnings-conference-call-transcript)
2. Compensation data for Michael R. Egeck, SEC, [link](https://www.sec.gov/Archives/edgar/data/1821806/000119312525011462/0001193125-25-011462-index.htm)
3. Compensation data for Steven M. Weddell, SEC, [link](https://www.sec.gov/Archives/edgar/data/1821806/000119312524014237/0001193125-24-014237-index.htm)
4. Current stock price data for Leslie's, Inc., NASDAQ, [source]
5. Leslie's Alert: Bragar Eagel & Squire, P.C. Investigation Announcement, Globe Newswire, [link](https://www.globenewswire.com/news-release/2024/12/20/3000353/0/en/LESLIE-S-ALERT-Bragar-Eagel-Squire-P-C-is-Investigating-Leslie-s-Inc-on-Behalf-of-Long-Term-Stockholders-and-Encourages-Investors-to-Contact-the-Firm.html)
