Our View On Alteryx's (NYSE:AYX) CEO Pay
Dean Stoecker became the CEO of Alteryx, Inc. (NYSE:AYX) in 1997, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Alteryx pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
View our latest analysis for Alteryx
Comparing Alteryx, Inc.'s CEO Compensation With the industry
According to our data, Alteryx, Inc. has a market capitalization of US$7.5b, and paid its CEO total annual compensation worth US$6.5m over the year to December 2019. We note that's an increase of 44% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$475k.
For comparison, other companies in the same industry with market capitalizations ranging between US$4.0b and US$12b had a median total CEO compensation of US$7.2m. This suggests that Alteryx remunerates its CEO largely in line with the industry average. What's more, Dean Stoecker holds US$869m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$475k | US$450k | 7% |
Other | US$6.1m | US$4.1m | 93% |
Total Compensation | US$6.5m | US$4.5m | 100% |
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. In Alteryx's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Alteryx, Inc.'s Growth Numbers
Alteryx, Inc. has seen its earnings per share (EPS) increase by 67% a year over the past three years. It achieved revenue growth of 50% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Alteryx, Inc. Been A Good Investment?
Boasting a total shareholder return of 447% over three years, Alteryx, Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
To Conclude...
As previously discussed, Dean is compensated close to the median for companies of its size, and which belong to the same industry. The company is growing EPS and total shareholder returns have been pleasing. So one could argue that CEO compensation is quite modest, if you consider company performance! In fact, shareholders might even think the CEO deserves a raise as a reward due to the fantastic returns generated.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 2 warning signs for Alteryx that investors should be aware of in a dynamic business environment.
Switching gears from Alteryx, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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