Shareholders May Not Be So Generous With Rockwell Automation, Inc.'s (NYSE:ROK) CEO Compensation And Here's Why

Key Insights

• Rockwell Automation will host its Annual General Meeting on 6th of February
• Total pay for CEO Blake Moret includes US$1.20m salary
• Total compensation is 42% above industry average
• Rockwell Automation's EPS grew by 11% over the past three years while total shareholder return over the past three years was 28%

CEO Blake Moret has done a decent job of delivering relatively good performance at Rockwell Automation, Inc. (NYSE:ROK) recently. 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 6th of February. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Rockwell Automation

Comparing Rockwell Automation, Inc.'s CEO Compensation With The Industry

Our data indicates that Rockwell Automation, Inc. has a market capitalization of US$35b, and total annual CEO compensation was reported as US$17m for the year to September 2023. Notably, that's an increase of 53% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.2m.

In comparison with other companies in the American Electrical industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$12m. Hence, we can conclude that Blake Moret is remunerated higher than the industry median. Moreover, Blake Moret also holds US$23m worth of Rockwell Automation stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	US$1.2m	US$1.2m	7%
Other	US$16m	US$9.8m	93%
Total Compensation	US$17m	US$11m	100%

On an industry level, roughly 21% of total compensation represents salary and 79% is other remuneration. It's interesting to note that Rockwell Automation allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Rockwell Automation, Inc.'s Growth Numbers

Rockwell Automation, Inc.'s earnings per share (EPS) grew 11% per year over the last three years. In the last year, its revenue is up 17%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Rockwell Automation, Inc. Been A Good Investment?

With a total shareholder return of 28% over three years, Rockwell Automation, Inc. shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Rockwell Automation that you should be aware of before investing.

Switching gears from Rockwell Automation, 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.