Rob Bernshteyn became the CEO of Coupa Software Incorporated (NASDAQ:COUP) in 2009. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Next, we'll consider growth that the business demonstrates. 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.
How Does Rob Bernshteyn's Compensation Compare With Similar Sized Companies?
According to our data, Coupa Software Incorporated has a market capitalization of US$13b, and paid its CEO total annual compensation worth US$11m over the year to January 2020. We note that's an increase of 16% above last year. While we always look at total compensation first, we note that the salary component is less, at US$494k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO total compensation to be US$12m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Coupa Software. Talking in terms of the sector, salary represented approximately 12% of total compensation out of all the companies we analysed, while other remuneration made up 88% of the pie. Coupa Software has chosen to walk a down a path less trodden, opting to compensate its CEO with less of a traditional salary and more non-salary rewards over the last year.
That means Rob Bernshteyn receives fairly typical remuneration for the CEO of a large company. 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 Coupa Software has changed over time.
Is Coupa Software Incorporated Growing?
Over the last three years, Coupa Software Incorporated has not seen its earnings per share change much, though they have deteriorated slightly, according to a line of best fit. In the last year, its revenue is up 50%.
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. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. It could be important to check this free visual depiction of what analysts expect for the future.
Has Coupa Software Incorporated Been A Good Investment?
Boasting a total shareholder return of 488% over three years, Coupa Software Incorporated has done well by shareholders. 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.
Remuneration for Rob Bernshteyn is close enough to the median pay for a CEO of a large company .
The company isn't showing particularly great growth, but shareholder returns have been pleasing. So all things considered I'd venture that the CEO pay is appropriate. Shifting gears from CEO pay for a second, we've spotted 4 warning signs for Coupa Software you should be aware of, and 1 of them doesn't sit too well with us.
Important note: Coupa 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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