Does TechTarget, Inc.’s (NASDAQ:TTGT) CEO Salary Compare Well With Others?
Mike Cotoia has been the CEO of TechTarget, Inc. (NASDAQ:TTGT) since 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for TechTarget
How Does Mike Cotoia’s Compensation Compare With Similar Sized Companies?
Our data indicates that TechTarget, Inc. is worth US$339m, and total annual CEO compensation is US$2.2m. (This is based on the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$600k. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO compensation was US$1.6m.
Thus we can conclude that Mike Cotoia receives more in total compensation than the median of a group of companies in the same market, and of similar size to TechTarget, Inc.. However, this doesn’t necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at TechTarget has changed from year to year.
Is TechTarget, Inc. Growing?
On average over the last three years, TechTarget, Inc. has grown earnings per share (EPS) by 34% each year. In the last year, its revenue is up 14%.
This demonstrates that the company has been improving recently. A good result. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.
You might want to check this free visual report on analyst forecasts for future earnings.
Has TechTarget, Inc. Been A Good Investment?
Boasting a total shareholder return of 51% over three years, TechTarget, Inc. has done well by shareholders. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
In Summary…
We compared the total CEO remuneration paid by TechTarget, Inc., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. In addition, shareholders have done well over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling TechTarget (free visualization of insider trades).
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
