Yahoo Finance Most Shareholders Will Probably Find That The CEO Compensation For MSCI Inc. (NYSE:MSCI) Is Reasonable
Key Insights
MSCI's Annual General Meeting to take place on 23rd of April
Salary of US$1.00m is part of CEO Henry Fernandez's total remuneration
The overall pay is comparable to the industry average
MSCI's total shareholder return over the past three years was 13% while its EPS grew by 26% over the past three years
CEO Henry Fernandez has done a decent job of delivering relatively good performance at MSCI Inc. (NYSE:MSCI) 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 23rd of April. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
See our latest analysis for MSCI
Comparing MSCI Inc.'s CEO Compensation With The Industry
Our data indicates that MSCI Inc. has a market capitalization of US$41b, and total annual CEO compensation was reported as US$14m for the year to December 2023. That's just a smallish increase of 6.1% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.0m.
On comparing similar companies in the American Capital Markets industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$17m. So it looks like MSCI compensates Henry Fernandez in line with the median for the industry. Moreover, Henry Fernandez also holds US$1.1b worth of MSCI stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$1.0m | US$1.0m | 7% |
Other | US$13m | US$12m | 93% |
Total Compensation | US$14m | US$13m | 100% |
Speaking on an industry level, nearly 10% of total compensation represents salary, while the remainder of 90% is other remuneration. MSCI pays a modest slice of remuneration through salary, as compared 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 MSCI Inc.'s Growth Numbers
MSCI Inc. has seen its earnings per share (EPS) increase by 26% a year over the past three years. It achieved revenue growth of 12% over the 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. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has MSCI Inc. Been A Good Investment?
MSCI Inc. has served shareholders reasonably well, with a total return of 13% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
To Conclude...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay 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've identified 1 warning sign for MSCI that investors should be aware of in a dynamic business environment.
Important note: MSCI 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.
