Shareholders May Not Be So Generous With Korn Ferry's (NYSE:KFY) CEO Compensation And Here's Why

Key Insights

• Korn Ferry will host its Annual General Meeting on 18th of September
• CEO Gary Burnison's total compensation includes salary of US$1.00m
• The total compensation is 164% higher than the average for the industry
• Korn Ferry's total shareholder return over the past three years was 57% while its EPS was down 8.3% over the past three years

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Korn Ferry (NYSE:KFY) has exhibited strong share price growth in the past few years. However, its earnings growth has not kept up, suggesting that there may be something amiss. Some of these issues will occupy shareholders' minds as the AGM rolls around on 18th of September. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.

Check out our latest analysis for Korn Ferry

Comparing Korn Ferry's CEO Compensation With The Industry

Our data indicates that Korn Ferry has a market capitalization of US$3.8b, and total annual CEO compensation was reported as US$15m for the year to April 2025. That's a notable increase of 21% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.0m.

For comparison, other companies in the American Professional Services industry with market capitalizations ranging between US$2.0b and US$6.4b had a median total CEO compensation of US$5.6m. Accordingly, our analysis reveals that Korn Ferry pays Gary Burnison north of the industry median. Furthermore, Gary Burnison directly owns US$10.0m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2025	2024	Proportion (2025)
Salary	US$1.0m	US$1.0m	7%
Other	US$14m	US$11m	93%
Total Compensation	US$15m	US$12m	100%

Speaking on an industry level, nearly 11% of total compensation represents salary, while the remainder of 89% is other remuneration. It's interesting to note that Korn Ferry allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Korn Ferry's Growth Numbers

Korn Ferry has reduced its earnings per share by 8.3% a year over the last three years. The trailing twelve months of revenue was pretty much the same as the prior period.

Overall this is not a very positive result for shareholders. And the flat revenue is seriously uninspiring. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Korn Ferry Been A Good Investment?

Most shareholders would probably be pleased with Korn Ferry for providing a total return of 57% 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.

In Summary...

Although shareholders would be quite happy with the returns they have earned on their initial investment, earnings have failed to grow and this could mean returns may be hard to keep up. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

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 Korn Ferry that you should be aware of before investing.

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.