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

Key Insights

• Broadridge Financial Solutions' Annual General Meeting to take place on 14th of November
• CEO Tim Gokey's total compensation includes salary of US$1.05m
• The overall pay is comparable to the industry average
• Over the past three years, Broadridge Financial Solutions' EPS grew by 7.5% and over the past three years, the total shareholder return was 29%

Performance at Broadridge Financial Solutions, Inc. (NYSE:BR) has been reasonably good and CEO Tim Gokey has done a decent job of steering the company in the right direction. 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 14th of November. We present our case of why we think CEO compensation looks fair.

View our latest analysis for Broadridge Financial Solutions

How Does Total Compensation For Tim Gokey Compare With Other Companies In 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$14m for the year to June 2024. That's a notable increase of 16% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.1m.

For comparison, other companies in the American Professional Services industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$14m. From this we gather that Tim Gokey is paid around the median for CEOs in the industry. What's more, Tim Gokey holds US$39m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	US$1.1m	US$1.0m	7%
Other	US$13m	US$11m	93%
Total Compensation	US$14m	US$12m	100%

Speaking on an industry level, nearly 16% of total compensation represents salary, while the remainder of 84% is other remuneration. Broadridge Financial Solutions 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.

A Look at Broadridge Financial Solutions, Inc.'s Growth Numbers

Over the past three years, Broadridge Financial Solutions, Inc. has seen its earnings per share (EPS) grow by 7.5% per year. Its revenue is up 4.7% over the last year.

We'd prefer higher revenue growth, but it is good to see modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. 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 generated a total shareholder return of 29% over three years, so most shareholders would 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. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 2 warning signs for Broadridge Financial Solutions that investors should be aware of in a dynamic business environment.

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.