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Mike Cannon-Brookes has been the CEO of Atlassian Corporation Plc (NASDAQ:TEAM) since 2002. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Mike Cannon-Brookes's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Atlassian Corporation Plc has a market cap of US$33b, and is paying total annual CEO compensation of US$326k. (This figure is for the year to June 2018). While we always look at total compensation first, we note that the salary component is less, at US$297k. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
A first glance this seems like a real positive for shareholders, since Mike Cannon-Brookes is paid less than the average total compensation paid by other large companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at Atlassian, below.
Is Atlassian Corporation Plc Growing?
Atlassian Corporation Plc has reduced its earnings per share by an average of 109% a year, over the last three years (measured with a line of best fit). Its revenue is up 38% over last year.
Investors should note that, over three years, earnings per share are down. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. It could be important to check this free visual depiction of what analysts expect for the future.
Has Atlassian Corporation Plc Been A Good Investment?
Boasting a total shareholder return of 396% over three years, Atlassian Corporation Plc has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
It looks like Atlassian Corporation Plc pays its CEO less than the average at large companies.
It's well worth noting that while Mike Cannon-Brookes is paid below what is normal at large companies, the returns have been very pleasing, over the last three years. Although we could see higher growth, we'd argue the remuneration is modest, based on these observations. Shareholders may want to check for free if Atlassian insiders are buying or selling shares.
If you want to buy a stock that is better than Atlassian, this free list of high return, low debt companies is a great place to look.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.