John Ambroseo became the CEO of Coherent Inc (NASDAQ:COHR) in 2002. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does John Ambroseo’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Coherent Inc has a market cap of US$3.1b, and is paying total annual CEO compensation of US$10m. That’s a notable increase of 95% on last year. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO compensation was US$5.1m.
Thus we can conclude that John Ambroseo receives more in total compensation than the median of a group of companies in the same market, and of similar size to Coherent Inc. However, this doesn’t necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Coherent has changed from year to year.
Is Coherent Inc Growing?
Coherent Inc has increased its earnings per share (EPS) by an average of 47% a year, over the last three years It achieved revenue growth of 11% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Coherent Inc Been A Good Investment?
I think that the total shareholder return of 88%, over three years, would leave most Coherent Inc shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
We compared the total CEO remuneration paid by Coherent Inc, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. On top of that, in the same period, returns to shareholders have been great. Considering this fine result for shareholders, we daresay the CEO compensation might be apt.
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.