Should Shareholders Reconsider SS&C Technologies Holdings, Inc.'s (NASDAQ:SSNC) CEO Compensation Package?

Key Insights

• SS&C Technologies Holdings' Annual General Meeting to take place on 29th of May
• Total pay for CEO Bill Stone includes US$1.00m salary
• The overall pay is 65% above the industry average
• SS&C Technologies Holdings' three-year loss to shareholders was 11% while its EPS was down 1.8% over the past three years

Shareholders will probably not be too impressed with the underwhelming results at SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 29th of May. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. We present the case why we think CEO compensation is out of sync with company performance.

See our latest analysis for SS&C Technologies Holdings

How Does Total Compensation For Bill Stone Compare With Other Companies In The Industry?

Our data indicates that SS&C Technologies Holdings, Inc. has a market capitalization of US$16b, and total annual CEO compensation was reported as US$20m for the year to December 2023. We note that's an increase of 57% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.0m.

On comparing similar companies in the American Professional Services industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$12m. Hence, we can conclude that Bill Stone is remunerated higher than the industry median. Furthermore, Bill Stone directly owns US$2.0b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	US$1.0m	US$875k	5%
Other	US$19m	US$12m	95%
Total Compensation	US$20m	US$13m	100%

Talking in terms of the industry, salary represented approximately 13% of total compensation out of all the companies we analyzed, while other remuneration made up 87% of the pie. Investors may find it interesting that SS&C Technologies Holdings paid a marginal salary to Bill Stone, over the past year, focusing on non-salary compensation instead. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at SS&C Technologies Holdings, Inc.'s Growth Numbers

Over the last three years, SS&C Technologies Holdings, Inc. has shrunk its earnings per share by 1.8% per year. In the last year, its revenue is up 4.2%.

The lack of EPS growth is certainly uninspiring. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has SS&C Technologies Holdings, Inc. Been A Good Investment?

With a three year total loss of 11% for the shareholders, SS&C Technologies Holdings, Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

SS&C Technologies Holdings primarily uses non-salary benefits to reward its CEO. Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for SS&C Technologies Holdings that investors should be aware of in a dynamic business environment.

Switching gears from SS&C Technologies Holdings, 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.

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.