Here's Why Victory Capital Holdings, Inc.'s (NASDAQ:VCTR) CEO Compensation Is The Least Of Shareholders' Concerns

Key Insights

• Victory Capital Holdings' Annual General Meeting to take place on 8th of May
• Total pay for CEO David Brown includes US$600.0k salary
• Total compensation is similar to the industry average
• Over the past three years, Victory Capital Holdings' EPS grew by 1.8% and over the past three years, the total shareholder return was 97%

CEO David Brown has done a decent job of delivering relatively good performance at Victory Capital Holdings, Inc. (NASDAQ:VCTR) 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 8th of May. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

View our latest analysis for Victory Capital Holdings

Comparing Victory Capital Holdings, Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that Victory Capital Holdings, Inc. has a market capitalization of US$3.2b, and reported total annual CEO compensation of US$5.9m for the year to December 2023. That's a notable decrease of 39% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$600k.

On examining similar-sized companies in the American Capital Markets industry with market capitalizations between US$2.0b and US$6.4b, we discovered that the median CEO total compensation of that group was US$7.8m. This suggests that Victory Capital Holdings remunerates its CEO largely in line with the industry average. Moreover, David Brown also holds US$105m worth of Victory Capital Holdings 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$600k	US$600k	10%
Other	US$5.3m	US$9.1m	90%
Total Compensation	US$5.9m	US$9.7m	100%

Talking in terms of the industry, salary represented approximately 10% of total compensation out of all the companies we analyzed, while other remuneration made up 90% of the pie. Our data reveals that Victory Capital Holdings allocates salary more or less in line with the wider market. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Victory Capital Holdings, Inc.'s Growth Numbers

Victory Capital Holdings, Inc. has seen its earnings per share (EPS) increase by 1.8% a year over the past three years. It saw its revenue drop 4.0% over the last year.

We would prefer it if there was revenue growth, but it is good to see a modest EPS growth at least. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Victory Capital Holdings, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Victory Capital Holdings, Inc. for providing a total return of 97% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

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. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 2 warning signs for Victory Capital Holdings that investors should look into moving forward.

Important note: Victory Capital Holdings 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.

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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.