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Performance at ANSYS, Inc. (NASDAQ:ANSS) has been reasonably good and CEO Ajei Gopal has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 14 May 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
How Does Total Compensation For Ajei Gopal Compare With Other Companies In The Industry?
Our data indicates that ANSYS, Inc. has a market capitalization of US$29b, and total annual CEO compensation was reported as US$14m for the year to December 2020. We note that's a decrease of 28% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$819k.
In comparison with other companies in the industry with market capitalizations over US$8.0b , the reported median total CEO compensation was US$9.7m. Accordingly, our analysis reveals that ANSYS, Inc. pays Ajei Gopal north of the industry median. What's more, Ajei Gopal holds US$30m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Talking in terms of the industry, salary represented approximately 11% of total compensation out of all the companies we analyzed, while other remuneration made up 89% of the pie. ANSYS sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at ANSYS, Inc.'s Growth Numbers
ANSYS, Inc. has seen its earnings per share (EPS) increase by 17% a year over the past three years. In the last year, its revenue is up 16%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has ANSYS, Inc. Been A Good Investment?
Boasting a total shareholder return of 93% over three years, ANSYS, 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.
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.
Shareholders may want to check for free if ANSYS insiders are buying or selling shares.
Important note: ANSYS is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.
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