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In 2013 Robert Stephenson was appointed CEO of Corero Network Security plc (LON:CNS). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. 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 Robert Stephenson's Compensation Compare With Similar Sized Companies?
According to our data, Corero Network Security plc has a market capitalization of UK£29m, and pays its CEO total annual compensation worth US$474k. (This is based on the year to December 2018). We note that's an increase of 53% above last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$270k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$318k.
It would therefore appear that Corero Network Security plc pays Robert Stephenson more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Corero Network Security has changed over time.
Is Corero Network Security plc Growing?
Over the last three years Corero Network Security plc has grown its earnings per share (EPS) by an average of 47% per year (using a line of best fit). Its revenue is up 17% over 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. You might want to check this free visual report on analyst forecasts for future earnings.
Has Corero Network Security plc Been A Good Investment?
Since shareholders would have lost about 63% over three years, some Corero Network Security plc shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
We examined the amount Corero Network Security plc pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. So shareholders might not feel great about the fact that CEO pay increased on last year. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. So you may want to check if insiders are buying Corero Network Security shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.