Key Insights

• SelectQuote to hold its Annual General Meeting on 12th of November
• Total pay for CEO Tim Danker includes US$540.8k salary
• Total compensation is similar to the industry average
• SelectQuote's EPS grew by 32% over the past three years while total shareholder loss over the past three years was 82%

Shareholders of SelectQuote, Inc. (NYSE:SLQT) will have been dismayed by the negative share price return over the last three years. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 12th of November. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

How Does Total Compensation For Tim Danker Compare With Other Companies In The Industry?

According to our data, SelectQuote, Inc. has a market capitalization of US$350m, and paid its CEO total annual compensation worth US$3.0m over the year to June 2024. That's a notable increase of 14% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$541k.

For comparison, other companies in the American Insurance industry with market capitalizations ranging between US$200m and US$800m had a median total CEO compensation of US$2.8m. So it looks like SelectQuote compensates Tim Danker in line with the median for the industry. What's more, Tim Danker holds US$4.2m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 14% of total compensation out of all the companies we analyzed, while other remuneration made up 86% of the pie. It's interesting to note that SelectQuote pays out a greater portion of remuneration through salary, compared to the industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at SelectQuote, Inc.'s Growth Numbers

SelectQuote, Inc. has seen its earnings per share (EPS) increase by 32% a year over the past three years. It achieved revenue growth of 29% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has SelectQuote, Inc. Been A Good Investment?

With a total shareholder return of -82% over three years, SelectQuote, Inc. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 3 warning signs (and 1 which doesn't sit too well with us) in SelectQuote we think you should know about.

Switching gears from SelectQuote, 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.