Dan Rosensweig has been the CEO of Chegg Inc (NYSE:CHGG) since 2010. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Dan Rosensweig’s Compensation Compare With Similar Sized Companies?
According to our data, Chegg Inc has a market capitalization of US$2.7b, and pays its CEO total annual compensation worth US$8m. That’s a notable increase of 23% on last year. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$5m.
As you can see, Dan Rosensweig is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Chegg Inc is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Chegg has changed from year to year.
Is Chegg Inc Growing?
Over the last three years Chegg Inc has grown its earnings per share (EPS) by an average of 51% per year. It achieved revenue growth of 13% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Chegg Inc Been A Good Investment?
Boasting a total shareholder return of 232% over three years, Chegg Inc has done well by shareholders. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
We compared the total CEO remuneration paid by Chegg Inc, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Chegg Inc.
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
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.