Steve Berglund has been the CEO of Trimble Inc. (NASDAQ:TRMB) since 1999. First, this article will compare CEO compensation with compensation at other large companies. Next, we'll consider growth that the business demonstrates. 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.
How Does Steve Berglund's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Trimble Inc. has a market cap of US$10b, and is paying total annual CEO compensation of US$11m. (This is based on the year to December 2018). That's just a smallish increase of 5.1% on last year. We think total compensation is more important but we note that the CEO salary is lower, at US$961k. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$11m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
That means Steve Berglund receives fairly typical remuneration for the CEO of a large company. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Trimble has changed over time.
Is Trimble Inc. Growing?
On average over the last three years, Trimble Inc. has grown earnings per share (EPS) by 21% each year (using a line of best fit). It achieved revenue growth of 18% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Trimble Inc. Been A Good Investment?
I think that the total shareholder return of 64%, over three years, would leave most Trimble 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.
Steve Berglund is paid around the same as most CEOs of large companies.
The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! Shareholders may want to check for free if Trimble insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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