It's Unlikely That Intuit Inc.'s (NASDAQ:INTU) CEO Will See A Huge Pay Rise This Year

Key Insights

• Intuit's Annual General Meeting to take place on 23rd of January
• Total pay for CEO Sasan Goodarzi includes US$1.20m salary
• Total compensation is 188% above industry average
• Intuit's total shareholder return over the past three years was 17% while its EPS grew by 11% over the past three years

CEO Sasan Goodarzi has done a decent job of delivering relatively good performance at Intuit Inc. (NASDAQ:INTU) 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 23rd of January. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Intuit

Comparing Intuit Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that Intuit Inc. has a market capitalization of US$170b, and reported total annual CEO compensation of US$37m for the year to July 2024. That's a notable increase of 34% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.2m.

On comparing similar companies in the American Software industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$13m. This suggests that Sasan Goodarzi is paid more than the median for the industry. What's more, Sasan Goodarzi holds US$23m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	US$1.2m	US$1.1m	3%
Other	US$35m	US$26m	97%
Total Compensation	US$37m	US$27m	100%

Speaking on an industry level, nearly 15% of total compensation represents salary, while the remainder of 85% is other remuneration. Intuit has chosen to walk a path less trodden, opting to compensate its CEO with less of a traditional salary and more non-salary rewards over the last year. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Intuit Inc.'s Growth Numbers

Intuit Inc. has seen its earnings per share (EPS) increase by 11% a year over the past three years. It achieved revenue growth of 12% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Intuit Inc. Been A Good Investment?

Intuit Inc. has generated a total shareholder return of 17% 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.

To Conclude...

Intuit primarily uses non-salary benefits to reward its CEO. The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Intuit 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.