Does CyberArk Software Ltd.'s (NASDAQ:CYBR) CEO Salary Compare Well With Others?
Udi Mokady became the CEO of CyberArk Software Ltd. (NASDAQ:CYBR) in 2005. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.
View our latest analysis for CyberArk Software
How Does Udi Mokady's Compensation Compare With Similar Sized Companies?
According to our data, CyberArk Software Ltd. has a market capitalization of US$4.6b, and pays its CEO total annual compensation worth US$6.7m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$375k. 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$5.0m.
As you can see, Udi Mokady is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean CyberArk Software Ltd. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at CyberArk Software, below.
Is CyberArk Software Ltd. Growing?
CyberArk Software Ltd. has reduced its earnings per share by an average of 1.5% a year, over the last three years (measured with a line of best fit). Its revenue is up 31% over last year.
Investors should note that, over three years, earnings per share are down. On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. It could be important to check this free visual depiction of what analysts expect for the future.
Has CyberArk Software Ltd. Been A Good Investment?
I think that the total shareholder return of 205%, over three years, would leave most CyberArk Software Ltd. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
We compared total CEO remuneration at CyberArk Software Ltd. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
One might like to have seen stronger growth, but shareholder returns have been pleasing, over the last three years. Considering this fine result for investors, we daresay the CEO compensation might be apt. Whatever your view on compensation, you might want to check if insiders are buying or selling CyberArk Software shares (free trial).
Important note: CyberArk Software may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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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.
