In 1991 Frank Laukien was appointed CEO of Bruker Corporation (NASDAQ:BRKR). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Frank Laukien's Compensation Compare With Similar Sized Companies?
According to our data, Bruker Corporation has a market capitalization of US$7.7b, and paid its CEO total annual compensation worth US$4.5m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$731k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We examined companies with market caps from US$4.0b to US$12b, and discovered that the median CEO total compensation of that group was US$6.8m.
A first glance this seems like a real positive for shareholders, since Frank Laukien is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at Bruker, below.
Is Bruker Corporation Growing?
On average over the last three years, Bruker Corporation has grown earnings per share (EPS) by 11% each year (using a line of best fit). In the last year, its revenue is up 8.2%.
This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.
Has Bruker Corporation Been A Good Investment?
I think that the total shareholder return of 131%, over three years, would leave most Bruker Corporation shareholders smiling. 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.
Bruker Corporation is currently paying its CEO below what is normal for companies of its size.
Considering the underlying business is growing earnings, this would suggest the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Frank Laukien deserves a raise! It's not often we see shareholders do so well, and yet the CEO is paid modestly. The cherry on top would be if company insiders are buying shares with their own money. So you may want to check if insiders are buying Bruker shares with their own money (free access).
If you want to buy a stock that is better than Bruker, 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 email@example.com. 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.