Kevin Yeaman became the CEO of Dolby Laboratories, Inc. (NYSE:DLB) in 2009. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Kevin Yeaman's Compensation Compare With Similar Sized Companies?
Our data indicates that Dolby Laboratories, Inc. is worth US$6.7b, and total annual CEO compensation was reported as US$8.2m for the year to September 2018. While we always look at total compensation first, we note that the salary component is less, at US$783k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations from US$4.0b to US$12b, and the median CEO total compensation was US$6.7m.
That means Kevin Yeaman receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Dolby Laboratories has changed over time.
Is Dolby Laboratories, Inc. Growing?
Over the last three years Dolby Laboratories, Inc. has grown its earnings per share (EPS) by an average of 13% per year (using a line of best fit). Its revenue is up 18% over last year.
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 Dolby Laboratories, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Dolby Laboratories, Inc. for providing a total return of 50% over three years. 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.
Kevin Yeaman is paid around the same as most CEOs of similar size 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! So you may want to check if insiders are buying Dolby Laboratories shares with their own money (free access).
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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