What Did Booz Allen Hamilton Holding Corporation's (NYSE:BAH) CEO Take Home Last Year?

Horacio Rozanski became the CEO of Booz Allen Hamilton Holding Corporation (NYSE:BAH) in 2015. First, this article will compare CEO compensation with compensation at other large companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Booz Allen Hamilton Holding

How Does Horacio Rozanski's Compensation Compare With Similar Sized Companies?

Our data indicates that Booz Allen Hamilton Holding Corporation is worth US$10b, and total annual CEO compensation is US$7.4m. (This is based on the year to March 2019). Notably, that's an increase of 51% over the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.5m. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$11m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.

A first glance this seems like a real positive for shareholders, since Horacio Rozanski is paid less than the average total compensation paid by other large companies. However, before we heap on the praise, we should delve deeper to understand business performance.

The graphic below shows how CEO compensation at Booz Allen Hamilton Holding has changed from year to year.

Is Booz Allen Hamilton Holding Corporation Growing?

On average over the last three years, Booz Allen Hamilton Holding Corporation has grown earnings per share (EPS) by 19% each year (using a line of best fit). In the last year, its revenue is up 9.4%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see a little revenue growth, as this is consistent with healthy business conditions.

Has Booz Allen Hamilton Holding Corporation Been A Good Investment?

Most shareholders would probably be pleased with Booz Allen Hamilton Holding Corporation for providing a total return of 154% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

It looks like Booz Allen Hamilton Holding Corporation pays its CEO less than the average at large companies. Many would consider this to indicate that the pay is modest since the business is growing. The pleasing shareholder returns are the cherry on top; you might even consider that Horacio Rozanski deserves a raise!

It is relatively rare to see a modestly paid CEO when performance is so impressive. It would be even more positive if company insiders are buying shares. Shareholders may want to check for free if Booz Allen Hamilton Holding insiders are buying or selling shares.

Important note: Booz Allen Hamilton Holding may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.