Fox Corporation's (NASDAQ:FOXA) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• Fox to hold its Annual General Meeting on 19th of November
• Salary of US$3.00m is part of CEO Lachlan Murdoch's total remuneration
• The overall pay is comparable to the industry average
• Over the past three years, Fox's EPS grew by 12% and over the past three years, the total shareholder return was 16%

Under the guidance of CEO Lachlan Murdoch, Fox Corporation (NASDAQ:FOXA) has performed reasonably well 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 19th of November. We present our case of why we think CEO compensation looks fair.

See our latest analysis for Fox

How Does Total Compensation For Lachlan Murdoch Compare With Other Companies In The Industry?

According to our data, Fox Corporation has a market capitalization of US$20b, and paid its CEO total annual compensation worth US$24m over the year to June 2024. That's a notable increase of 9.3% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$3.0m.

In comparison with other companies in the American Media industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$20m. This suggests that Fox remunerates its CEO largely in line with the industry average. Furthermore, Lachlan Murdoch directly owns US$49m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	US$3.0m	US$3.0m	13%
Other	US$21m	US$19m	87%
Total Compensation	US$24m	US$22m	100%

Speaking on an industry level, nearly 19% of total compensation represents salary, while the remainder of 81% is other remuneration. In Fox's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader 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 Fox Corporation's Growth Numbers

Fox Corporation's earnings per share (EPS) grew 12% per year over the last three years. It saw its revenue drop 4.0% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Fox Corporation Been A Good Investment?

Fox Corporation has generated a total shareholder return of 16% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

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. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

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

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.