Yahoo Finance Most Shareholders Will Probably Agree With Rockwell Automation, Inc.'s (NYSE:ROK) CEO Compensation
Performance at Rockwell Automation, Inc. (NYSE:ROK) has been reasonably good and CEO Blake Moret has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 07 February 2023, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. We present our case of why we think CEO compensation looks fair.
View our latest analysis for Rockwell Automation
Comparing Rockwell Automation, Inc.'s CEO Compensation With The Industry
Our data indicates that Rockwell Automation, Inc. has a market capitalization of US$32b, and total annual CEO compensation was reported as US$11m for the year to September 2022. We note that's a decrease of 19% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.2m.
On comparing similar companies in the American Electrical industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$13m. This suggests that Rockwell Automation remunerates its CEO largely in line with the industry average. What's more, Blake Moret holds US$19m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2022 | 2021 | Proportion (2022) |
Salary | US$1.2m | US$1.1m | 11% |
Other | US$9.8m | US$12m | 89% |
Total Compensation | US$11m | US$14m | 100% |
Talking in terms of the industry, salary represented approximately 15% of total compensation out of all the companies we analyzed, while other remuneration made up 85% of the pie. It's interesting to note that Rockwell Automation allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Rockwell Automation, Inc.'s Growth Numbers
Rockwell Automation, Inc.'s earnings per share (EPS) grew 5.7% per year over the last three years. In the last year, its revenue is up 8.2%.
We would argue that the improvement in revenue is good, but isn't particularly impressive, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Rockwell Automation, Inc. Been A Good Investment?
Boasting a total shareholder return of 45% over three years, Rockwell Automation, Inc. 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...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Rockwell Automation that investors should look into moving forward.
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.
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