- Oops!Something went wrong.Please try again later.
Shareholders will be pleased by the impressive results for Veeva Systems Inc. (NYSE:VEEV) recently and CEO Peter Gassner has played a key role. This would be kept in mind at the upcoming AGM on 23 June 2021 which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.
Comparing Veeva Systems Inc.'s CEO Compensation With the industry
At the time of writing, our data shows that Veeva Systems Inc. has a market capitalization of US$46b, and reported total annual CEO compensation of US$346k for the year to January 2021. That's just a smallish increase of 6.4% on last year. It is worth noting that the CEO compensation consists entirely of the salary, worth US$346k.
For comparison, other companies in the industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$8.5m. Accordingly, Veeva Systems pays its CEO under the industry median. What's more, Peter Gassner holds US$3.9b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
On an industry level, around 13% of total compensation represents salary and 87% is other remuneration. Speaking on a company level, Veeva Systems prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Veeva Systems Inc.'s Growth Numbers
Veeva Systems Inc. has seen its earnings per share (EPS) increase by 34% a year over the past three years. In the last year, its revenue is up 31%.
Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Veeva Systems Inc. Been A Good Investment?
Boasting a total shareholder return of 252% over three years, Veeva Systems Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Veeva Systems rewards its CEO solely through a salary, ignoring non-salary benefits completely. Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Veeva Systems.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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.