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Is Cornerstone OnDemand Inc (NASDAQ:CSOD) Overpaying Its CEO?

Adam Miller became the CEO of Cornerstone OnDemand Inc (NASDAQ:CSOD) in 1999. 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. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Cornerstone OnDemand

How Does Adam Miller’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Cornerstone OnDemand Inc has a market cap of US$2.9b, and is paying total annual CEO compensation of US$5.6m. That’s a fairly small increase of 4.8% on year before. 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$5.0m.

So Adam Miller is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.

You can see, below, how CEO compensation at Cornerstone OnDemand has changed over time.

NasdaqGS:CSOD CEO Compensation November 14th 18

Is Cornerstone OnDemand Inc Growing?

On average over the last three years, Cornerstone OnDemand Inc has grown earnings per share (EPS) by 20% each year. Its revenue is up 16% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. IThis sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.

You might want to check this free visual report on analyst forecasts for future earnings.

Has Cornerstone OnDemand Inc Been A Good Investment?

Most shareholders would probably be pleased with Cornerstone OnDemand Inc for providing a total return of 43% over three years. 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.

In Summary…

Adam Miller is paid around what is normal the leaders of comparable size companies.

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! Shareholders may want to check for free if Cornerstone OnDemand Inc insiders are buying or selling shares.

Or you might prefer this data-rich interactive visualization of historic revenue and earnings.

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 editorial-team@simplywallst.com.