Mike Cote became the CEO of SecureWorks Corp. (NASDAQ:SCWX) in 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. This method should give us information to assess how appropriately the company pays the CEO.
How Does Mike Cote's Compensation Compare With Similar Sized Companies?
According to our data, SecureWorks Corp. has a market capitalization of US$1.1b, and pays its CEO total annual compensation worth US$3.6m. (This is based on the year to February 2019). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$494k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2.7m.
Thus we can conclude that Mike Cote receives more in total compensation than the median of a group of companies in the same market, and of similar size to SecureWorks Corp.. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at SecureWorks, below.
Is SecureWorks Corp. Growing?
Over the last three years SecureWorks Corp. has grown its earnings per share (EPS) by an average of 35% per year (using a line of best fit). It achieved revenue growth of 9.4% over the last year.
This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. You might want to check this free visual report on analyst forecasts for future earnings.
Has SecureWorks Corp. Been A Good Investment?
SecureWorks Corp. has generated a total shareholder return of 4.1% over three years, so most shareholders wouldn't be too disappointed. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
We compared the total CEO remuneration paid by SecureWorks Corp., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. Looking at the same time period, we think that the shareholder returns are respectable. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we'd recommend further research on management. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at SecureWorks.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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