Here's Why Jones Lang LaSalle Incorporated's (NYSE:JLL) CEO Compensation Is The Least Of Shareholders' Concerns

Key Insights

• Jones Lang LaSalle to hold its Annual General Meeting on 21st of May
• CEO Christian Ulbrich's total compensation includes salary of US$1.00m
• The overall pay is comparable to the industry average
• Jones Lang LaSalle's total shareholder return over the past three years was 26% while its EPS was down 17% over the past three years

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The share price of Jones Lang LaSalle Incorporated (NYSE:JLL) has been growing in the past few years, however, the per-share earnings growth has been lacking, suggesting something is amiss. The upcoming AGM on 21st of May may be an opportunity for shareholders to bring up any concerns they may have for the board’s attention. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.

See our latest analysis for Jones Lang LaSalle

Comparing Jones Lang LaSalle Incorporated's CEO Compensation With The Industry

Our data indicates that Jones Lang LaSalle Incorporated has a market capitalization of US$11b, and total annual CEO compensation was reported as US$17m for the year to December 2024. Notably, that's an increase of 41% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.0m.

For comparison, other companies in the American Real Estate industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$22m. From this we gather that Christian Ulbrich is paid around the median for CEOs in the industry. What's more, Christian Ulbrich holds US$34m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 30% of total compensation represents salary and 70% is other remuneration. Jones Lang LaSalle 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.

Jones Lang LaSalle Incorporated's Growth

Over the last three years, Jones Lang LaSalle Incorporated has shrunk its earnings per share by 17% per year. In the last year, its revenue is up 14%.

Few shareholders would be pleased to read that EPS have declined. While the revenue growth is good to see, it is outweighed by the fact that EPS are down, over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Jones Lang LaSalle Incorporated Been A Good Investment?

Jones Lang LaSalle Incorporated has generated a total shareholder return of 26% 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...

Shareholder returns, while positive, should be looked at along with earnings, which have not grown at all recently. This makes us think the share price momentum may slow in the future. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

Whatever your view on compensation, you might want to check if insiders are buying or selling Jones Lang LaSalle shares (free trial).

Switching gears from Jones Lang LaSalle, 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.