What Did Booz Allen Hamilton Holding's (NYSE:BAH) CEO Take Home Last Year?

Horacio Rozanski has been the CEO of Booz Allen Hamilton Holding Corporation (NYSE:BAH) since 2015, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for Booz Allen Hamilton Holding

How Does Total Compensation For Horacio Rozanski Compare With Other Companies In The Industry?

At the time of writing, our data shows that Booz Allen Hamilton Holding Corporation has a market capitalization of US$12b, and reported total annual CEO compensation of US$8.1m for the year to March 2020. That's a notable increase of 8.7% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.5m.

On comparing similar companies in the industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$11m. From this we gather that Horacio Rozanski is paid around the median for CEOs in the industry. Furthermore, Horacio Rozanski directly owns US$43m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 14% of total compensation represents salary and 86% is other remuneration. According to our research, Booz Allen Hamilton Holding has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Booz Allen Hamilton Holding Corporation's Growth

Booz Allen Hamilton Holding Corporation's earnings per share (EPS) grew 27% per year over the last three years. It achieved revenue growth of 10% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Booz Allen Hamilton Holding Corporation Been A Good Investment?

Most shareholders would probably be pleased with Booz Allen Hamilton Holding Corporation for providing a total return of 133% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

As previously discussed, Horacio is compensated close to the median for companies of its size, and which belong to the same industry. The company is growing EPS and total shareholder returns have been pleasing. Indeed, many might consider that Horacio is compensated rather modestly, given the solid company performance! In fact, shareholders might even think the CEO deserves a raise as a reward due to the fantastic returns generated.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Booz Allen Hamilton Holding that investors should look into moving forward.

Switching gears from Booz Allen Hamilton Holding, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

This article by Simply Wall St is general in nature. 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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