Key Insights
- Frontdoor's Annual General Meeting to take place on 14th of May
- Total pay for CEO Bill Cobb includes US$825.0k salary
- Total compensation is 39% above industry average
- Frontdoor's total shareholder return over the past three years was 102% while its EPS grew by 30% over the past three years
CEO Bill Cobb has done a decent job of delivering relatively good performance at Frontdoor, Inc. (NASDAQ:FTDR) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 14th of May. However, some shareholders will still be cautious of paying the CEO excessively.
See our latest analysis for Frontdoor
How Does Total Compensation For Bill Cobb Compare With Other Companies In The Industry?
Our data indicates that Frontdoor, Inc. has a market capitalization of US$3.8b, and total annual CEO compensation was reported as US$8.4m for the year to December 2024. That's just a smallish increase of 6.8% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$825k.
On comparing similar companies from the American Consumer Services industry with market caps ranging from US$2.0b to US$6.4b, we found that the median CEO total compensation was US$6.1m. Accordingly, our analysis reveals that Frontdoor, Inc. pays Bill Cobb north of the industry median. What's more, Bill Cobb holds US$6.8m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$825k | US$825k | 10% |
| Other | US$7.6m | US$7.1m | 90% |
| Total Compensation | US$8.4m | US$7.9m | 100% |
On an industry level, roughly 23% of total compensation represents salary and 77% is other remuneration. It's interesting to note that Frontdoor allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Frontdoor, Inc.'s Growth Numbers
Frontdoor, Inc. has seen its earnings per share (EPS) increase by 30% a year over the past three years. It achieved revenue growth of 5.6% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 Frontdoor, Inc. Been A Good Investment?
Boasting a total shareholder return of 102% over three years, Frontdoor, 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.
To Conclude...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay 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 1 warning sign for Frontdoor that investors should think about before committing capital to this stock.
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.
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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.