It's Unlikely That Stride, Inc.'s (NYSE:LRN) CEO Will See A Huge Pay Rise This Year

Key Insights

• Stride to hold its Annual General Meeting on 4th of December
• Salary of US$1.00m is part of CEO James Rhyu's total remuneration
• The total compensation is 317% higher than the average for the industry
• Stride's EPS grew by 50% over the past three years while total shareholder return over the past three years was 80%

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CEO James Rhyu has done a decent job of delivering relatively good performance at Stride, Inc. (NYSE:LRN) recently. 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 4th of December. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Stride

How Does Total Compensation For James Rhyu Compare With Other Companies In The Industry?

Our data indicates that Stride, Inc. has a market capitalization of US$2.7b, and total annual CEO compensation was reported as US$21m for the year to June 2025. That's a notable increase of 38% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.0m.

On comparing similar companies from the American Consumer Services industry with market caps ranging from US$2.0b to US$6.4b, we found that the median CEO total compensation was US$5.2m. This suggests that James Rhyu is paid more than the median for the industry. Moreover, James Rhyu also holds US$48m worth of Stride stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 22% of total compensation represents salary, while the remainder of 78% is other remuneration. Interestingly, the company has chosen to go down an unconventional route in that it pays a smaller salary to James Rhyu as compared to non-salary compensation over the one-year period examined. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Stride, Inc.'s Growth Numbers

Stride, Inc.'s earnings per share (EPS) grew 50% per year over the last three years. Its revenue is up 17% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Stride, Inc. Been A Good Investment?

We think that the total shareholder return of 80%, over three years, would leave most Stride, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Stride prefers rewarding its CEO through non-salary benefits. 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. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Stride that investors should be aware of in a dynamic business environment.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.