Shareholders Will Most Likely Find Compass, Inc.'s (NYSE:COMP) CEO Compensation Acceptable
Key Insights
- Compass to hold its Annual General Meeting on 22nd of May
- Total pay for CEO Robert Reffkin includes US$900.0k salary
- The total compensation is similar to the average for the industry
- Compass' EPS grew by 51% over the past three years while total shareholder return over the past three years was 11%
CEO Robert Reffkin has done a decent job of delivering relatively good performance at Compass, Inc. (NYSE:COMP) recently. As shareholders go into the upcoming AGM on 22nd of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. We present our case of why we think CEO compensation looks fair.
See our latest analysis for Compass
Comparing Compass, Inc.'s CEO Compensation With The Industry
At the time of writing, our data shows that Compass, Inc. has a market capitalization of US$3.3b, and reported total annual CEO compensation of US$15m for the year to December 2024. Notably, that's an increase of 95% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$900k.
In comparison with other companies in the American Real Estate industry with market capitalizations ranging from US$2.0b to US$6.4b, the reported median CEO total compensation was US$12m. So it looks like Compass compensates Robert Reffkin in line with the median for the industry. Moreover, Robert Reffkin also holds US$110m worth of Compass 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$900k | US$500k | 6% |
| Other | US$14m | US$7.2m | 94% |
| Total Compensation | US$15m | US$7.7m | 100% |
On an industry level, around 29% of total compensation represents salary and 71% is other remuneration. In Compass' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Compass, Inc.'s Growth Numbers
Over the past three years, Compass, Inc. has seen its earnings per share (EPS) grow by 51% per year. It achieved revenue growth of 19% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 Compass, Inc. Been A Good Investment?
With a total shareholder return of 11% over three years, Compass, Inc. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
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. 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.
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 1 warning sign for Compass that you should be aware of before investing.
Switching gears from Compass, 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.
Valuation is complex, but we're here to simplify it.
Discover if Compass might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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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.