CEO Bill Brown has done a decent job of delivering relatively good performance at L3Harris Technologies, Inc. (NYSE:LHX) 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 23 April 2021. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

See our latest analysis for L3Harris Technologies

How Does Total Compensation For Bill Brown Compare With Other Companies In The Industry?

At the time of writing, our data shows that L3Harris Technologies, Inc. has a market capitalization of US$45b, and reported total annual CEO compensation of US$15m for the year to January 2021. We note that's a small decrease of 6.3% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, 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$18m. This suggests that L3Harris Technologies remunerates its CEO largely in line with the industry average. What's more, Bill Brown holds US$77m 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, around 17% of total compensation represents salary and 83% is other remuneration. In L3Harris Technologies' 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.

A Look at L3Harris Technologies, Inc.'s Growth Numbers

Over the last three years, L3Harris Technologies, Inc. has not seen its earnings per share change much, though there is a slight positive movement. In the last year, its revenue is down 1.3%.

We generally like to see a little revenue growth, but it is good to see a modest EPS growth at least. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has L3Harris Technologies, Inc. Been A Good Investment?

With a total shareholder return of 32% over three years, L3Harris Technologies, Inc. shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this 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. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for L3Harris Technologies that investors should look into moving forward.

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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.