Does Guidewire Software, Inc.'s (NYSE:GWRE) CEO Salary Compare Well With Others?
Marcus Ryu became the CEO of Guidewire Software, Inc. (NYSE:GWRE) in 2010. 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. 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.
Check out our latest analysis for Guidewire Software
How Does Marcus Ryu's Compensation Compare With Similar Sized Companies?
Our data indicates that Guidewire Software, Inc. is worth US$8.4b, and total annual CEO compensation is US$11m. (This is based on the year to July 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$530k. When we examined a selection of companies with market caps ranging from US$4.0b to US$12b, we found the median CEO total compensation was US$6.9m.
As you can see, Marcus Ryu is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Guidewire Software, Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Guidewire Software, below.
Is Guidewire Software, Inc. Growing?
Guidewire Software, Inc. saw earnings per share stay pretty flat over the last three years, albeit with a slight positive trend. In the last year, its revenue is up 28%.
It's great to see that revenue growth is strong. Combined with modest EPS growth, we get a good impression of the company. I wouldn't say this is necessarily top notch growth, but it is certainly promising. It could be important to check this free visual depiction of what analysts expect for the future.
Has Guidewire Software, Inc. Been A Good Investment?
I think that the total shareholder return of 66%, over three years, would leave most Guidewire Software, Inc. shareholders smiling. 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.
In Summary...
We examined the amount Guidewire Software, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. 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 Guidewire Software shares (free trial).
If you want to buy a stock that is better than Guidewire Software, this free list of high return, low debt companies is a great place to look.
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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.
