Yahoo Finance The CEO Of Jack Henry & Associates, Inc. (NASDAQ:JKHY) Might See A Pay Rise On The Horizon
Shareholders will be pleased by the robust performance of Jack Henry & Associates, Inc. (NASDAQ:JKHY) recently and this will be kept in mind in the upcoming AGM on 15 November 2022. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. Here is our take on why we think CEO compensation is fair and may even warrant a raise.
View our latest analysis for Jack Henry & Associates
Comparing Jack Henry & Associates, Inc.'s CEO Compensation With The Industry
Our data indicates that Jack Henry & Associates, Inc. has a market capitalization of US$13b, and total annual CEO compensation was reported as US$9.8m for the year to June 2022. That's a notable increase of 12% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$840k.
For comparison, other companies in the industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$16m. Accordingly, Jack Henry & Associates pays its CEO under the industry median. What's more, Dave Foss holds US$23m 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$840k | US$840k | 9% |
Other | US$8.9m | US$7.9m | 91% |
Total Compensation | US$9.8m | US$8.7m | 100% |
On an industry level, around 10% of total compensation represents salary and 90% is other remuneration. There isn't a significant difference between Jack Henry & Associates and the broader market, in terms of salary allocation in the overall compensation package. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Jack Henry & Associates, Inc.'s Growth Numbers
Jack Henry & Associates, Inc. has seen its earnings per share (EPS) increase by 12% a year over the past three years. Its revenue is up 11% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Jack Henry & Associates, Inc. Been A Good Investment?
Jack Henry & Associates, Inc. has generated a total shareholder return of 27% over three years, so most shareholders would be reasonably content. 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.
In Summary...
The company's overall performance, while not bad, could be better. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.
Shareholders may want to check for free if Jack Henry & Associates insiders are buying or selling shares.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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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