Mike Cotoia became the CEO of TechTarget, Inc. (NASDAQ:TTGT) in 2016. 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 Cotoia's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that TechTarget, Inc. has a market cap of US$731m, and reported total annual CEO compensation of US$1.1m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$600k. We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO total compensation of that group was US$2.5m.
Most shareholders would consider it a positive that Mike Cotoia takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at TechTarget has changed from year to year.
Is TechTarget, Inc. Growing?
On average over the last three years, TechTarget, Inc. has grown earnings per share (EPS) by 60% each year (using a line of best fit). It achieved revenue growth of 8.4% over the last year.
This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Shareholders might be interested in this free visualization of analyst forecasts.
Has TechTarget, Inc. Been A Good Investment?
Boasting a total shareholder return of 197% over three years, TechTarget, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
It appears that TechTarget, Inc. remunerates its CEO below most similar sized companies.
Since the business is growing, many would argue this suggests the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Mike Cotoia deserves a raise! It is relatively rare to see a modestly paid CEO when performance is so impressive. But it is even better if company insiders are also buying shares with their own money. Shareholders may want to check for free if TechTarget insiders are buying or selling shares.
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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