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Yahoo Finance Plus We Think Some Shareholders May Hesitate To Increase Korn Ferry's (NYSE:KFY) CEO Compensation
Key Insights
Korn Ferry will host its Annual General Meeting on 21st of September
CEO Gary Burnison's total compensation includes salary of US$1.00m
Total compensation is 32% above industry average
Korn Ferry's total shareholder return over the past three years was 65% while its EPS grew by 81% over the past three years
CEO Gary Burnison has done a decent job of delivering relatively good performance at Korn Ferry (NYSE:KFY) 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 21st of September. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
View our latest analysis for Korn Ferry
How Does Total Compensation For Gary Burnison Compare With Other Companies In The Industry?
Our data indicates that Korn Ferry has a market capitalization of US$2.5b, and total annual CEO compensation was reported as US$12m for the year to April 2023. Notably, that's an increase of 21% 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.
In comparison with other companies in the American Professional Services industry with market capitalizations ranging from US$2.0b to US$6.4b, the reported median CEO total compensation was US$8.7m. This suggests that Gary Burnison is paid more than the median for the industry. What's more, Gary Burnison holds US$13m 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$1.0m | US$985k | 9% |
Other | US$11m | US$8.6m | 91% |
Total Compensation | US$12m | US$9.5m | 100% |
Speaking on an industry level, nearly 14% of total compensation represents salary, while the remainder of 86% is other remuneration. Korn Ferry pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Korn Ferry's Growth
Over the past three years, Korn Ferry has seen its earnings per share (EPS) grow by 81% per year. It achieved revenue growth of 3.7% over the last year.
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 Korn Ferry Been A Good Investment?
Boasting a total shareholder return of 65% over three years, Korn Ferry has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
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.
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 1 warning sign for Korn Ferry that investors should be aware of in a dynamic business environment.
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.
