John Ambroseo has been the CEO of Coherent, Inc. (NASDAQ:COHR) since 2002. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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 John Ambroseo's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Coherent, Inc. has a market cap of US$3.8b, and reported total annual CEO compensation of US$4.9m for the year to September 2019. That's below the compensation, last year. While we always look at total compensation first, we note that the salary component is less, at US$820k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO total compensation was US$4.9m.
So John Ambroseo is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Coherent, below.
Is Coherent, Inc. Growing?
Over the last three years Coherent, Inc. has grown its earnings per share (EPS) by an average of 7.1% per year (using a line of best fit). In the last year, its revenue is down 25%.
I would prefer it if there was revenue growth, but I'm happy with the EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. Shareholders might be interested in this free visualization of analyst forecasts.
Has Coherent, Inc. Been A Good Investment?
Since shareholders would have lost about 5.0% over three years, some Coherent, Inc. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
Remuneration for John Ambroseo is close enough to the median pay for a CEO of a similar sized company .
The per share growth could be better, in our view. And shareholder returns have been disappointing over the last three years. So it would take a bold person to suggest the pay is too modest. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Coherent (free visualization of insider trades).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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.
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. Thank you for reading.