We Think The Compensation For Broadridge Financial Solutions, Inc.'s (NYSE:BR) CEO Looks About Right

Key Insights

• Broadridge Financial Solutions to hold its Annual General Meeting on 9th of November
• Salary of US$1.02m is part of CEO Tim Gokey's total remuneration
• The total compensation is similar to the average for the industry
• Over the past three years, Broadridge Financial Solutions' EPS grew by 12% and over the past three years, the total shareholder return was 30%

CEO Tim Gokey has done a decent job of delivering relatively good performance at Broadridge Financial Solutions, Inc. (NYSE:BR) 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

Comparing Broadridge Financial Solutions, Inc.'s CEO Compensation With The Industry

Our data indicates that Broadridge Financial Solutions, Inc. has a market capitalization of US$20b, and total annual CEO compensation was reported as US$12m for 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.

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$11m. This suggests that Broadridge Financial Solutions remunerates its CEO largely in line with the industry average. Moreover, Tim Gokey also holds US$28m 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	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%

Speaking on an industry level, nearly 15% of total compensation represents salary, while the remainder of 85% is other remuneration. In Broadridge Financial Solutions' case, non-salary compensation represents a greater slice of total remuneration, 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.

Broadridge Financial Solutions, Inc.'s Growth

Over the past three years, Broadridge Financial Solutions, Inc. has seen its earnings per share (EPS) grow by 12% per year. Its revenue is up 7.1% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Broadridge Financial Solutions, Inc. Been A Good Investment?

Broadridge Financial Solutions, Inc. has served shareholders reasonably well, with a total return of 30% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Broadridge Financial Solutions that investors should think about before committing capital to this stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.