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Rob Eberle has been the CEO of Bottomline Technologies (de), Inc. (NASDAQ:EPAY) since 2006. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Rob Eberle's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Bottomline Technologies (de), Inc. has a market cap of US$2.0b, and is paying total annual CEO compensation of US$6.7m. (This figure is for the year to June 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$384k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$3.6m.
It would therefore appear that Bottomline Technologies (de), Inc. pays Rob Eberle more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Bottomline Technologies (de) has changed from year to year.
Is Bottomline Technologies (de), Inc. Growing?
On average over the last three years, Bottomline Technologies (de), Inc. has grown earnings per share (EPS) by 73% each year (using a line of best fit). It achieved revenue growth of 13% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Bottomline Technologies (de), Inc. Been A Good Investment?
Most shareholders would probably be pleased with Bottomline Technologies (de), Inc. for providing a total return of 61% over three years. 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.
We compared total CEO remuneration at Bottomline Technologies (de), Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. On top of that, in the same period, returns to shareholders have been great. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. So you may want to check if insiders are buying Bottomline Technologies (de) shares with their own money (free access).
If you want to buy a stock that is better than Bottomline Technologies (de), this free list of high return, low debt companies is a great place to look.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.