Most Shareholders Will Probably Agree With MSCI Inc.'s (NYSE:MSCI) CEO Compensation

Key Insights

• MSCI's Annual General Meeting to take place on 23rd of April
• CEO Henry Fernandez's total compensation includes salary of US$1.00m
• Total compensation is similar to the industry average
• MSCI's total shareholder return over the past three years was 13% while its EPS grew by 26% over the past three years

CEO Henry Fernandez has done a decent job of delivering relatively good performance at MSCI Inc. (NYSE:MSCI) recently. As shareholders go into the upcoming AGM on 23rd of April, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Here is our take on why we think the CEO compensation looks appropriate.

View our latest analysis for MSCI

Comparing MSCI Inc.'s CEO Compensation With The Industry

Our data indicates that MSCI Inc. has a market capitalization of US$41b, and total annual CEO compensation was reported as US$14m for the year to December 2023. That's just a smallish increase of 6.1% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.0m.

In comparison with other companies in the American Capital Markets industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$17m. So it looks like MSCI compensates Henry Fernandez in line with the median for the industry. What's more, Henry Fernandez holds US$1.1b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	US$1.0m	US$1.0m	7%
Other	US$13m	US$12m	93%
Total Compensation	US$14m	US$13m	100%

On an industry level, roughly 10% of total compensation represents salary and 90% is other remuneration. MSCI sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at MSCI Inc.'s Growth Numbers

MSCI Inc.'s earnings per share (EPS) grew 26% per year over the last three years. In the last year, its revenue is up 12%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has MSCI Inc. Been A Good Investment?

MSCI Inc. has generated a total shareholder return of 13% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this 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 CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for MSCI 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.