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What Can We Learn About Bottomline Technologies (de)'s (NASDAQ:EPAY) CEO Compensation?

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Simply Wall St
·3 min read
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Rob Eberle became the CEO of Bottomline Technologies (de), Inc. (NASDAQ:EPAY) in 2006, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

See our latest analysis for Bottomline Technologies (de)

How Does Total Compensation For Rob Eberle Compare With Other Companies In The Industry?

Our data indicates that Bottomline Technologies (de), Inc. has a market capitalization of US$2.4b, and total annual CEO compensation was reported as US$5.7m for the year to June 2020. Notably, that's a decrease of 32% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$398k.

For comparison, other companies in the same industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$4.4m. This suggests that Bottomline Technologies (de) remunerates its CEO largely in line with the industry average. What's more, Rob Eberle holds US$26m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component

2020

2019

Proportion (2020)

Salary

US$398k

US$392k

7%

Other

US$5.3m

US$8.0m

93%

Total Compensation

US$5.7m

US$8.4m

100%

On an industry level, roughly 13% of total compensation represents salary and 87% is other remuneration. Bottomline Technologies (de) pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
ceo-compensation

Bottomline Technologies (de), Inc.'s Growth

Bottomline Technologies (de), Inc.'s earnings per share (EPS) grew 29% per year over the last three years. It achieved revenue growth of 4.4% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Bottomline Technologies (de), Inc. Been A Good Investment?

Boasting a total shareholder return of 42% over three years, Bottomline Technologies (de), Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

As we noted earlier, Bottomline Technologies (de) pays its CEO in line with similar-sized companies belonging to the same industry. Few would be critical of the leadership, since returns have been juicy and EPS are moving in the right direction. So one could argue that CEO compensation is quite modest, if you consider company performance! In fact, shareholders might even think the CEO deserves a raise as a reward due to the fantastic returns generated.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 2 warning signs for Bottomline Technologies (de) that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.