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We Discuss Why SS&C Technologies Holdings, Inc.'s (NASDAQ:SSNC) CEO Compensation May Be Closely Reviewed

Key Insights

  • SS&C Technologies Holdings' Annual General Meeting to take place on 29th of May

  • CEO Bill Stone's total compensation includes salary of US$1.00m

  • The overall pay is 65% above the industry average

  • Over the past three years, SS&C Technologies Holdings' EPS fell by 1.8% and over the past three years, the total loss to shareholders 13%

SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) has not performed well recently and CEO Bill Stone will probably need to up their game. At the upcoming AGM on 29th of May, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.

View our latest analysis for SS&C Technologies Holdings

How Does Total Compensation For Bill Stone Compare With Other Companies In The Industry?

According to our data, SS&C Technologies Holdings, Inc. has a market capitalization of US$16b, and paid its CEO total annual compensation worth US$20m over the year to December 2023. That's a notable increase of 57% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.0m.

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In comparison with other companies in the American Professional Services industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$12m. This suggests that Bill Stone is paid more than the median for the industry. What's more, Bill Stone holds US$2.0b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component

2023

2022

Proportion (2023)

Salary

US$1.0m

US$875k

5%

Other

US$19m

US$12m

95%

Total Compensation

US$20m

US$13m

100%

On an industry level, roughly 13% of total compensation represents salary and 87% is other remuneration. A high-salary is usually a no-brainer when it comes to attracting the best executives, but SS&C Technologies Holdings paid Bill Stone a nominal salary to the CEO over the past 12 months, instead focusing on non-salary compensation. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
ceo-compensation

SS&C Technologies Holdings, Inc.'s Growth

Over the last three years, SS&C Technologies Holdings, Inc. has shrunk its earnings per share by 1.8% per year. Its revenue is up 4.2% over the last year.

The lack of EPS growth is certainly uninspiring. The fairly low revenue growth fails to impress given that the EPS is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 SS&C Technologies Holdings, Inc. Been A Good Investment?

With a three year total loss of 13% for the shareholders, SS&C Technologies Holdings, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

SS&C Technologies Holdings prefers rewarding its CEO through non-salary benefits. Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for SS&C Technologies Holdings that investors should be aware of in a dynamic business environment.

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.