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Horacio Rozanski has been the CEO of Booz Allen Hamilton Holding Corporation (NYSE:BAH) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.
How Does Horacio Rozanski's Compensation Compare With Similar Sized Companies?
According to our data, Booz Allen Hamilton Holding Corporation has a market capitalization of US$9.1b, and pays its CEO total annual compensation worth US$7.4m. (This number is for the twelve months until March 2019). We note that's an increase of 51% above last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.5m. We looked at a group of companies with market capitalizations from US$4.0b to US$12b, and the median CEO total compensation was US$6.9m.
So Horacio Rozanski 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.
You can see a visual representation of the CEO compensation at Booz Allen Hamilton Holding, below.
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 15% each year (using a line of best fit). It achieved revenue growth of 8.7% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.
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 138% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Horacio Rozanski is paid around the same as most CEOs of similar 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! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Booz Allen Hamilton Holding (free visualization of insider trades).
If you want to buy a stock that is better than Booz Allen Hamilton Holding, 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 email@example.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.