In 2016 VJ Joshi was appointed CEO of 3D Systems Corporation (NYSE:DDD). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does VJ Joshi's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that 3D Systems Corporation has a market cap of US$962m, and is paying total annual CEO compensation of US$2.1m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$953k. When we examined a selection of companies with market caps ranging from US$400m to US$1.6b, we found the median CEO total compensation was US$2.7m.
That means VJ Joshi 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 3D Systems has changed from year to year.
Is 3D Systems Corporation Growing?
Over the last three years 3D Systems Corporation has grown its earnings per share (EPS) by an average of 102% per year (using a line of best fit). Its revenue is up 2.8% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to check this free visual report on analyst forecasts for future earnings.
Has 3D Systems Corporation Been A Good Investment?
With a three year total loss of 46%, 3D Systems Corporation would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
VJ Joshi is paid around the same as most CEOs of similar size companies.
We like that the company is growing EPS, but it's disappointing to see negative shareholder returns over three years. Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. Whatever your view on compensation, you might want to check if insiders are buying or selling 3D Systems shares (free trial).
If you want to buy a stock that is better than 3D Systems, this free list of high return, low debt companies is a great place to look.
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