We Take A Look At Why Broadridge Financial Solutions, Inc.'s (NYSE:BR) CEO Has Earned Their Pay Packet
Key Insights
- Broadridge Financial Solutions' Annual General Meeting to take place on 13th of November
- Total pay for CEO Tim Gokey includes US$1.08m salary
- Total compensation is similar to the industry average
- Broadridge Financial Solutions' EPS grew by 17% over the past three years while total shareholder return over the past three years was 72%
We have been pretty impressed with the performance at Broadridge Financial Solutions, Inc. (NYSE:BR) recently and CEO Tim Gokey deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 13th of November. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.
Check out our latest analysis for Broadridge Financial Solutions
Comparing Broadridge Financial Solutions, Inc.'s CEO Compensation With The Industry
At the time of writing, our data shows that Broadridge Financial Solutions, Inc. has a market capitalization of US$26b, and reported total annual CEO compensation of US$17m for the year to June 2025. We note that's an increase of 21% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.1m.
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$15m. So it looks like Broadridge Financial Solutions compensates Tim Gokey in line with the median for the industry. Moreover, Tim Gokey also holds US$31m worth of Broadridge Financial Solutions stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2025 | 2024 | Proportion (2025) |
| Salary | US$1.1m | US$1.1m | 6% |
| Other | US$16m | US$13m | 94% |
| Total Compensation | US$17m | US$14m | 100% |
On an industry level, roughly 11% of total compensation represents salary and 89% is other remuneration. Broadridge Financial Solutions sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Broadridge Financial Solutions, Inc.'s Growth
Broadridge Financial Solutions, Inc.'s earnings per share (EPS) grew 17% per year over the last three years. In the last year, its revenue is up 5.9%.
This demonstrates that the company has been improving recently and is good news for the shareholders. 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?
Most shareholders would probably be pleased with Broadridge Financial Solutions, Inc. for providing a total return of 72% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
To Conclude...
Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Broadridge Financial Solutions that investors should think about before committing capital to this stock.
Important note: Broadridge Financial Solutions 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.
Valuation is complex, but we're here to simplify it.
Discover if Broadridge Financial Solutions might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
Access Free AnalysisHave 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.