In 2014 Bradley Feldmann was appointed CEO of Cubic Corporation (NYSE:CUB). 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Bradley Feldmann's Compensation Compare With Similar Sized Companies?
According to our data, Cubic Corporation has a market capitalization of US$2.2b, and paid its CEO total annual compensation worth US$4.6m over the year to September 2018. While we always look at total compensation first, we note that the salary component is less, at US$871k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO total compensation of that group was US$4.1m.
That means Bradley Feldmann 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.
The graphic below shows how CEO compensation at Cubic has changed from year to year.
Is Cubic Corporation Growing?
Cubic Corporation has increased its earnings per share (EPS) by an average of 3.2% a year, over the last three years (using a line of best fit). Its revenue is up 20% over last year.
I think the revenue growth is good. And, while modest, the earnings per share growth is noticeable. Although we'll stop short of calling the stock a top performer, we think the company has potential. Shareholders might be interested in this free visualization of analyst forecasts.
Has Cubic Corporation Been A Good Investment?
Most shareholders would probably be pleased with Cubic Corporation for providing a total return of 52% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Bradley Feldmann is paid around what is normal the leaders of comparable size companies.
While the growth could be better, the shareholder returns are clearly good. So we can conclude that on this analysis the CEO compensation seems pretty sound. So you may want to check if insiders are buying Cubic shares with their own money (free access).
If you want to buy a stock that is better than Cubic, this free list of high return, low debt companies is a great place to look.
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