Key Insights
- State Street to hold its Annual General Meeting on 14th of May
- CEO Ron O’Hanley's total compensation includes salary of US$1.20m
- Total compensation is similar to the industry average
- State Street's total shareholder return over the past three years was 54% while its EPS grew by 7.7% over the past three years
Performance at State Street Corporation (NYSE:STT) has been reasonably good and CEO Ron O’Hanley has done a decent job of steering the company in the right direction. 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 14th of May. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
Check out our latest analysis for State Street
Comparing State Street Corporation's CEO Compensation With The Industry
According to our data, State Street Corporation has a market capitalization of US$26b, and paid its CEO total annual compensation worth US$17m over the year to December 2024. We note that's an increase of 24% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.2m.
For comparison, other companies in the American Capital Markets industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$17m. This suggests that State Street remunerates its CEO largely in line with the industry average. Moreover, Ron O’Hanley also holds US$28m worth of State Street stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$1.2m | US$1.1m | 7% |
| Other | US$16m | US$12m | 93% |
| Total Compensation | US$17m | US$13m | 100% |
Talking in terms of the industry, salary represented approximately 11% of total compensation out of all the companies we analyzed, while other remuneration made up 89% of the pie. In State Street's case, non-salary compensation represents a greater slice of total remuneration, 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.
State Street Corporation's Growth
Over the past three years, State Street Corporation has seen its earnings per share (EPS) grow by 7.7% per year. In the last year, its revenue is up 9.5%.
We'd prefer higher revenue growth, but we're happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise. 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 State Street Corporation Been A Good Investment?
Boasting a total shareholder return of 54% over three years, State Street Corporation has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for State Street that investors should think about before committing capital to this stock.
Switching gears from State Street, 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.
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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.