We Think Shareholders Are Less Likely To Approve A Pay Rise For Paycor HCM, Inc.'s (NASDAQ:PYCR) CEO For Now

Key Insights

• Paycor HCM to hold its Annual General Meeting on 23rd of October
• Total pay for CEO Raul Villar includes US$605.2k salary
• The total compensation is similar to the average for the industry
• Paycor HCM's three-year loss to shareholders was 56% while its EPS grew by 26% over the past three years

In the past three years, the share price of Paycor HCM, Inc. (NASDAQ:PYCR) has struggled to grow and now shareholders are sitting on a loss. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. The AGM coming up on the 23rd of October could be an opportunity for shareholders to bring these concerns to the board's attention. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Check out our latest analysis for Paycor HCM

Comparing Paycor HCM, Inc.'s CEO Compensation With The Industry

According to our data, Paycor HCM, Inc. has a market capitalization of US$2.5b, and paid its CEO total annual compensation worth US$11m over the year to June 2024. That's a fairly small increase of 5.5% over the previous year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$605k.

On comparing similar companies from the American Professional Services industry with market caps ranging from US$2.0b to US$6.4b, we found that the median CEO total compensation was US$8.6m. From this we gather that Raul Villar is paid around the median for CEOs in the industry. Furthermore, Raul Villar directly owns US$3.1m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	US$605k	US$578k	6%
Other	US$10m	US$9.6m	94%
Total Compensation	US$11m	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. Paycor HCM pays a modest slice of remuneration through salary, as compared 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.

Paycor HCM, Inc.'s Growth

Paycor HCM, Inc. has seen its earnings per share (EPS) increase by 26% a year over the past three years. It achieved revenue growth of 19% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Paycor HCM, Inc. Been A Good Investment?

Few Paycor HCM, Inc. shareholders would feel satisfied with the return of -56% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

Shareholders may want to check for free if Paycor HCM insiders are buying or selling shares.

Important note: Paycor HCM is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.