We Think Shareholders Are Less Likely To Approve A Pay Rise For Eventbrite, Inc.'s (NYSE:EB) CEO For Now

Key Insights

• Eventbrite will host its Annual General Meeting on 6th of June
• Total pay for CEO Julia Hartz includes US$486.3k salary
• Total compensation is similar to the industry average
• Over the past three years, Eventbrite's EPS grew by 68% and over the past three years, the total loss to shareholders 76%

Shareholders of Eventbrite, Inc. (NYSE:EB) will have been dismayed by the negative share price return over the last three years. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 6th of June. They could also influence management through voting on resolutions such as executive remuneration. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

See 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$480m, and reported total annual CEO compensation of US$4.8m for the year to December 2023. That's a notable decrease of 50% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$486k.

For comparison, other companies in the American Entertainment industry with market capitalizations ranging between US$200m and US$800m had a median total CEO compensation of US$4.8m. So it looks like Eventbrite compensates Julia Hartz in line with the median for the industry. Moreover, Julia Hartz also holds US$6.8m worth of Eventbrite stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	US$486k	US$475k	10%
Other	US$4.3m	US$9.2m	90%
Total Compensation	US$4.8m	US$9.6m	100%

Speaking on an industry level, nearly 17% of total compensation represents salary, while the remainder of 83% is other remuneration. Eventbrite 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 Eventbrite, Inc.'s Growth Numbers

Eventbrite, Inc.'s earnings per share (EPS) grew 68% per year over the last three years. Its revenue is up 18% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Eventbrite, Inc. Been A Good Investment?

With a total shareholder return of -76% over three years, Eventbrite, Inc. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Eventbrite that you should be aware of before investing.

Switching gears from Eventbrite, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.