Key Insights
-
Broadridge Financial Solutions’ Annual General Meeting to take place on 9th of November
-
CEO Tim Gokey’s total compensation includes salary of US$1.02m
-
Total compensation is similar to the industry average
-
Over the past three years, Broadridge Financial Solutions’ EPS grew by 12% and over the past three years, the total shareholder return was 30%
Under the guidance of CEO Tim Gokey, Broadridge Financial Solutions, Inc. (NYSE:BR) has performed reasonably well recently. As shareholders go into the upcoming AGM on 9th of November, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
See our latest analysis for Broadridge Financial Solutions
How Does Total Compensation For Tim Gokey Compare With Other Companies In The Industry?
According to our data, Broadridge Financial Solutions, Inc. has a market capitalization of US$20b, and paid its CEO total annual compensation worth US$12m over the year to June 2023. Notably, that’s an increase of 22% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.0m.
For comparison, other companies in the American Professional Services industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$11m. So it looks like Broadridge Financial Solutions compensates Tim Gokey in line with the median for the industry. What’s more, Tim Gokey holds US$28m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
|
Component |
2023 |
2022 |
Proportion (2023) |
|
Salary |
US$1.0m |
US$963k |
8% |
|
Other |
US$11m |
US$9.1m |
92% |
|
Total Compensation |
US$12m |
US$10m |
100% |
Talking in terms of the industry, salary represented approximately 15% of total compensation out of all the companies we analyzed, while other remuneration made up 85% of the pie. It’s interesting to note that Broadridge Financial Solutions allocates a smaller portion of compensation to salary in comparison to the broader industry. 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 Broadridge Financial Solutions, Inc.’s Growth Numbers
Over the past three years, Broadridge Financial Solutions, Inc. has seen its earnings per share (EPS) grow by 12% per year. It achieved revenue growth of 7.1% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It’s nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company’s future earnings..
Has Broadridge Financial Solutions, Inc. Been A Good Investment?
With a total shareholder return of 30% over three years, Broadridge Financial Solutions, Inc. shareholders would, in general, be reasonably content. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
To Conclude…
Given that the company’s overall performance has been reasonable, the CEO remuneration policy might not be shareholders’ central point of focus in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.
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 Broadridge Financial Solutions that you should be aware of before investing.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
