U.S. Markets closed
  • S&P Futures

    3,442.75
    +10.50 (+0.31%)
     
  • Dow Futures

    28,260.00
    +78.00 (+0.28%)
     
  • Nasdaq Futures

    11,698.75
    +38.00 (+0.33%)
     
  • Russell 2000 Futures

    1,618.80
    +4.00 (+0.25%)
     
  • Crude Oil

    41.51
    +0.05 (+0.12%)
     
  • Gold

    1,913.70
    -1.70 (-0.09%)
     
  • Silver

    24.89
    -0.09 (-0.36%)
     
  • EUR/USD

    1.1833
    +0.0004 (+0.0355%)
     
  • 10-Yr Bond

    0.7970
    +0.0360 (+4.73%)
     
  • Vix

    29.35
    +0.17 (+0.58%)
     
  • GBP/USD

    1.2956
    +0.0010 (+0.0739%)
     
  • USD/JPY

    105.4880
    +0.0180 (+0.0171%)
     
  • BTC-USD

    11,916.33
    +859.33 (+7.77%)
     
  • CMC Crypto 200

    239.54
    +0.62 (+0.26%)
     
  • FTSE 100

    5,889.22
    +4.57 (+0.08%)
     
  • Nikkei 225

    23,567.04
    -104.06 (-0.44%)
     

Our Take On Houlihan Lokey, Inc.'s (NYSE:HLI) CEO Salary

Simply Wall St

Scott Beiser has been the CEO of Houlihan Lokey, Inc. (NYSE:HLI) since 2003. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Houlihan Lokey

How Does Scott Beiser's Compensation Compare With Similar Sized Companies?

Our data indicates that Houlihan Lokey, Inc. is worth US$2.9b, and total annual CEO compensation is US$4.7m. (This number is for the twelve months until March 2019). That's below the compensation, last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$400k. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO total compensation was US$5.1m.

So Scott Beiser is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

The graphic below shows how CEO compensation at Houlihan Lokey has changed from year to year.

NYSE:HLI CEO Compensation, August 23rd 2019
NYSE:HLI CEO Compensation, August 23rd 2019

Is Houlihan Lokey, Inc. Growing?

On average over the last three years, Houlihan Lokey, Inc. has grown earnings per share (EPS) by 22% each year (using a line of best fit). Its revenue is up 15% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Shareholders might be interested in this free visualization of analyst forecasts.

Has Houlihan Lokey, Inc. Been A Good Investment?

Boasting a total shareholder return of 93% over three years, Houlihan Lokey, Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Scott Beiser is paid around what is normal the leaders of comparable size companies.

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Houlihan Lokey.

If you want to buy a stock that is better than Houlihan Lokey, this free list of high return, low debt companies is a great place to look.

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.