Yahoo Finance Increases to Rockwell Automation, Inc.'s (NYSE:ROK) CEO Compensation Might Cool off for now
Key Insights
Rockwell Automation will host its Annual General Meeting on 6th of February
Total pay for CEO Blake Moret includes US$1.20m salary
The total compensation is 42% higher than the average for the industry
Rockwell Automation's EPS grew by 11% over the past three years while total shareholder return over the past three years was 28%
CEO Blake Moret has done a decent job of delivering relatively good performance at Rockwell Automation, Inc. (NYSE:ROK) 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 6th of February. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
Check out our latest analysis for Rockwell Automation
How Does Total Compensation For Blake Moret Compare With Other Companies In The Industry?
At the time of writing, our data shows that Rockwell Automation, Inc. has a market capitalization of US$35b, and reported total annual CEO compensation of US$17m for the year to September 2023. Notably, that's an increase of 53% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.2m.
In comparison with other companies in the American Electrical industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$12m. This suggests that Blake Moret is paid more than the median for the industry. Moreover, Blake Moret also holds US$23m worth of Rockwell Automation 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$1.2m | US$1.2m | 7% |
Other | US$16m | US$9.8m | 93% |
Total Compensation | US$17m | US$11m | 100% |
Speaking on an industry level, nearly 21% of total compensation represents salary, while the remainder of 79% is other remuneration. It's interesting to note that Rockwell Automation allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Rockwell Automation, Inc.'s Growth
Over the past three years, Rockwell Automation, Inc. has seen its earnings per share (EPS) grow by 11% per year. It achieved revenue growth of 17% 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 Rockwell Automation, Inc. Been A Good Investment?
Rockwell Automation, Inc. has served shareholders reasonably well, with a total return of 28% 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.
In Summary...
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. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.
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 1 warning sign for Rockwell Automation 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.
