Key Insights

• ScanSource to hold its Annual General Meeting on 10th of December
• Salary of US$901.0k is part of CEO Mike Baur's total remuneration
• Total compensation is similar to the industry average
• Over the past three years, ScanSource's EPS grew by 7.2% and over the past three years, the total shareholder return was 52%

CEO Mike Baur has done a decent job of delivering relatively good performance at ScanSource, Inc. (NASDAQ:SCSC) recently. 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 10th of December. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

How Does Total Compensation For Mike Baur Compare With Other Companies In The Industry?

At the time of writing, our data shows that ScanSource, Inc. has a market capitalization of US$1.3b, and reported total annual CEO compensation of US$5.9m for the year to June 2024. That's just a smallish increase of 3.9% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$901k.

For comparison, other companies in the American Electronic industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$5.8m. This suggests that ScanSource remunerates its CEO largely in line with the industry average. What's more, Mike Baur holds US$9.4m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 28% of total compensation represents salary and 72% is other remuneration. ScanSource pays a modest slice of remuneration through salary, as compared 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.

ScanSource, Inc.'s Growth

Over the past three years, ScanSource, Inc. has seen its earnings per share (EPS) grow by 7.2% per year. It saw its revenue drop 15% over the last year.

We generally like to see a little revenue growth, but the modest improvement in EPS is good. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 ScanSource, Inc. Been A Good Investment?

Most shareholders would probably be pleased with ScanSource, Inc. for providing a total return of 52% over three years. 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...

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 it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for ScanSource 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.

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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.