Does Cornerstone OnDemand, Inc.'s (NASDAQ:CSOD) CEO Pay Matter?
In 1999 Adam Miller was appointed CEO of Cornerstone OnDemand, Inc. (NASDAQ:CSOD). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. 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?
According to our data, Cornerstone OnDemand, Inc. has a market capitalization of US$3.1b, and pays its CEO total annual compensation worth US$6.6m. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$500k. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO total compensation was US$5.1m.
So Adam Miller is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Cornerstone OnDemand has changed over time.
Is Cornerstone OnDemand, Inc. Growing?
On average over the last three years, Cornerstone OnDemand, Inc. has grown earnings per share (EPS) by 35% each year (using a line of best fit). In the last year, its revenue is up 6.7%.
This shows that the company has improved itself over the last few years. Good news for shareholders. 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 Cornerstone OnDemand, Inc. Been A Good Investment?
Cornerstone OnDemand, Inc. has generated a total shareholder return of 15% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
Adam Miller is paid around what is normal the leaders of comparable size companies.
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. So considering these factors, we think the CEO pay is probably quite reasonable. Shareholders may want to check for free if Cornerstone OnDemand insiders are buying or selling shares.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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 editorial-team@simplywallst.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.
