It's Unlikely That Eventbrite, Inc.'s (NYSE:EB) CEO Will See A Huge Pay Rise This Year

Key Insights

• Eventbrite to hold its Annual General Meeting on 5th of June
• CEO Julia Hartz's total compensation includes salary of US$497.5k
• Total compensation is 49% above industry average
• Eventbrite's EPS grew by 64% over the past three years while total shareholder loss over the past three years was 81%

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In the past three years, the share price of Eventbrite, Inc. (NYSE:EB) has struggled to grow and now shareholders are sitting on a loss. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 5th of June. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for Eventbrite

How Does Total Compensation For Julia Hartz Compare With Other Companies In The Industry?

At the time of writing, our data shows that Eventbrite, Inc. has a market capitalization of US$229m, and reported total annual CEO compensation of US$6.5m for the year to December 2024. We note that's an increase of 36% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$498k.

On comparing similar companies from the American Entertainment industry with market caps ranging from US$100m to US$400m, we found that the median CEO total compensation was US$4.4m. Accordingly, our analysis reveals that Eventbrite, Inc. pays Julia Hartz north of the industry median. Moreover, Julia Hartz also holds US$4.0m worth of Eventbrite stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 24% of total compensation represents salary and 76% is other remuneration. Eventbrite pays a modest slice of remuneration through salary, as compared 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.

Eventbrite, Inc.'s Growth

Eventbrite, Inc. has seen its earnings per share (EPS) increase by 64% a year over the past three years. In the last year, its revenue is down 6.5%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Eventbrite, Inc. Been A Good Investment?

The return of -81% over three years would not have pleased Eventbrite, Inc. shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would be keen to know what's holding the stock back when earnings have grown. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

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 2 warning signs for Eventbrite 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.