Increases to CEO Compensation Might Be Put On Hold For Now at e.l.f. Beauty, Inc. (NYSE:ELF)

Key Insights

• e.l.f. Beauty will host its Annual General Meeting on 22nd of August
• CEO Tarang Amin's total compensation includes salary of US$475.0k
• The total compensation is 453% higher than the average for the industry
• e.l.f. Beauty's total shareholder return over the past three years was 437% while its EPS grew by 103% over the past three years

Performance at e.l.f. Beauty, Inc. (NYSE:ELF) has been reasonably good and CEO Tarang Amin has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 22nd of August. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for e.l.f. Beauty

Comparing e.l.f. Beauty, Inc.'s CEO Compensation With The Industry

Our data indicates that e.l.f. Beauty, Inc. has a market capitalization of US$8.2b, and total annual CEO compensation was reported as US$8.4m for the year to March 2024. That's a notable increase of 50% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$475k.

On examining similar-sized companies in the American Personal Products industry with market capitalizations between US$4.0b and US$12b, we discovered that the median CEO total compensation of that group was US$1.5m. Accordingly, our analysis reveals that e.l.f. Beauty, Inc. pays Tarang Amin north of the industry median. Moreover, Tarang Amin also holds US$142m worth of e.l.f. Beauty stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	US$475k	US$475k	6%
Other	US$8.0m	US$5.2m	94%
Total Compensation	US$8.4m	US$5.6m	100%

On an industry level, roughly 29% of total compensation represents salary and 71% is other remuneration. e.l.f. Beauty sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at e.l.f. Beauty, Inc.'s Growth Numbers

Over the past three years, e.l.f. Beauty, Inc. has seen its earnings per share (EPS) grow by 103% per year. In the last year, its revenue is up 68%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 e.l.f. Beauty, Inc. Been A Good Investment?

Boasting a total shareholder return of 437% over three years, e.l.f. Beauty, Inc. has done well by shareholders. 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...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 3 warning signs for e.l.f. Beauty 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.