VJ Joshi has been the CEO of 3D Systems Corporation (NYSE:DDD) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. 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 VJ Joshi’s Compensation Compare With Similar Sized Companies?
According to our data, 3D Systems Corporation has a market capitalization of US$1.2b, and pays its CEO total annual compensation worth US$1.9m. (This is based on the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$925k. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO compensation of that group was US$3.6m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at 3D Systems has changed from year to year.
Is 3D Systems Corporation Growing?
On average over the last three years, 3D Systems Corporation has grown earnings per share (EPS) by 76% each year. It achieved revenue growth of 7.8% over the last year.
This demonstrates that the company has been improving recently. A good result. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has 3D Systems Corporation Been A Good Investment?
With a total shareholder return of 4.3% over three years, 3D Systems Corporation has done okay by shareholders. But they would probably prefer not to see CEO compensation far in excess of the median.
It appears that 3D Systems Corporation remunerates its CEO below most similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. While returns over the last few years haven’t been top notch, there is nothing to suggest to us that VJ Joshi is overcompensated.
Few would complain about reasonable CEO remuneration when the business is growing earnings per share. But it would be nice if insiders were also buying shares. Shareholders may want to check for free if 3D Systems insiders are buying or selling shares.
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.