It May Be Possible That Nelnet, Inc.'s (NYSE:NNI) CEO Compensation Could Get Bumped Up

Key Insights

• Nelnet to hold its Annual General Meeting on 15th of May
• Total pay for CEO Jeff Noordhoek includes US$870.0k salary
• The overall pay is 82% below the industry average
• Nelnet's total shareholder return over the past three years was 37% while its EPS was down 21% over the past three years

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The decent performance at Nelnet, Inc. (NYSE:NNI) recently will please most shareholders as they go into the AGM coming up on 15th of May. They will probably be more interested in hearing the board discuss future initiatives to further improve the business as they vote on resolutions such as executive remuneration. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.

See our latest analysis for Nelnet

How Does Total Compensation For Jeff Noordhoek Compare With Other Companies In The Industry?

At the time of writing, our data shows that Nelnet, Inc. has a market capitalization of US$3.8b, and reported total annual CEO compensation of US$1.6m for the year to December 2024. That's a notable decrease of 18% on last year. In particular, the salary of US$870.0k, makes up a fairly large portion of the total compensation being paid to the CEO.

On comparing similar companies from the American Consumer Finance industry with market caps ranging from US$2.0b to US$6.4b, we found that the median CEO total compensation was US$8.6m. This suggests that Jeff Noordhoek is paid below the industry median. What's more, Jeff Noordhoek holds US$58m 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$870k	US$855k	56%
Other	US$686k	US$1.0m	44%
Total Compensation	US$1.6m	US$1.9m	100%

Speaking on an industry level, nearly 13% of total compensation represents salary, while the remainder of 87% is other remuneration. According to our research, Nelnet has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Nelnet, Inc.'s Growth Numbers

Over the last three years, Nelnet, Inc. has shrunk its earnings per share by 21% per year. It achieved revenue growth of 16% over the last year.

The reduction in EPS, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Nelnet, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Nelnet, Inc. for providing a total return of 37% 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.

To Conclude...

The company's overall performance, while not bad, could be better. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

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 Nelnet that investors should think about before committing capital to this stock.

Important note: Nelnet 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.