Yahoo Finance It's Unlikely That Motorola Solutions, Inc.'s (NYSE:MSI) CEO Will See A Huge Pay Rise This Year
Key Insights
Motorola Solutions will host its Annual General Meeting on 14th of May
Salary of US$1.35m is part of CEO Greg Brown's total remuneration
The total compensation is 514% higher than the average for the industry
Over the past three years, Motorola Solutions' EPS grew by 12% and over the past three years, the total shareholder return was 85%
Performance at Motorola Solutions, Inc. (NYSE:MSI) has been reasonably good and CEO Greg Brown has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 14th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.
View our latest analysis for Motorola Solutions
How Does Total Compensation For Greg Brown Compare With Other Companies In The Industry?
Our data indicates that Motorola Solutions, Inc. has a market capitalization of US$60b, and total annual CEO compensation was reported as US$28m for the year to December 2023. We note that's an increase of 34% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.4m.
On comparing similar companies in the American Communications industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$4.6m. Accordingly, our analysis reveals that Motorola Solutions, Inc. pays Greg Brown north of the industry median. Furthermore, Greg Brown directly owns US$153m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$1.4m | US$1.3m | 5% |
Other | US$27m | US$20m | 95% |
Total Compensation | US$28m | US$21m | 100% |
On an industry level, roughly 24% of total compensation represents salary and 76% is other remuneration. Motorola Solutions has chosen to walk a path less trodden, opting to compensate its CEO with less of a traditional salary and more non-salary rewards over the last year. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Motorola Solutions, Inc.'s Growth
Over the past three years, Motorola Solutions, Inc. has seen its earnings per share (EPS) grow by 12% per year. In the last year, its revenue is up 8.6%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 Motorola Solutions, Inc. Been A Good Investment?
Boasting a total shareholder return of 85% over three years, Motorola Solutions, Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
Motorola Solutions prefers rewarding its CEO through non-salary benefits. 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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Motorola Solutions that you should be aware of before investing.
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.
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.
