Shareholders Would Not Be Objecting To Gartner, Inc.'s (NYSE:IT) CEO Compensation And Here's Why

Key Insights

• Gartner's Annual General Meeting to take place on 6th of June
• CEO Gene Hall's total compensation includes salary of US$956.5k
• Total compensation is similar to the industry average
• Over the past three years, Gartner's EPS grew by 37% and over the past three years, the total shareholder return was 77%

It would be hard to discount the role that CEO Gene Hall has played in delivering the impressive results at Gartner, Inc. (NYSE:IT) recently. Shareholders will have this at the front of their minds in the upcoming AGM on 6th of June. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

See our latest analysis for Gartner

How Does Total Compensation For Gene Hall Compare With Other Companies In The Industry?

At the time of writing, our data shows that Gartner, Inc. has a market capitalization of US$32b, and reported total annual CEO compensation of US$16m for the year to December 2023. That's just a smallish increase of 5.5% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$956k.

In comparison with other companies in the American IT industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$18m. This suggests that Gartner remunerates its CEO largely in line with the industry average. What's more, Gene Hall holds US$479m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	US$956k	US$935k	6%
Other	US$15m	US$15m	94%
Total Compensation	US$16m	US$15m	100%

Talking in terms of the industry, salary represented approximately 26% of total compensation out of all the companies we analyzed, while other remuneration made up 74% of the pie. Gartner sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Gartner, Inc.'s Growth Numbers

Over the past three years, Gartner, Inc. has seen its earnings per share (EPS) grow by 37% per year. In the last year, its revenue is up 6.2%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Gartner, Inc. Been A Good Investment?

We think that the total shareholder return of 77%, over three years, would leave most Gartner, Inc. shareholders smiling. 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...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

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. We've identified 2 warning signs for Gartner that investors should be aware of in a dynamic business environment.

Important note: Gartner is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.