In 2007 Peter Gassner was appointed CEO of Veeva Systems Inc. (NYSE:VEEV). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Peter Gassner's Compensation Compare With Similar Sized Companies?
According to our data, Veeva Systems Inc. has a market capitalization of US$22b, and paid its CEO total annual compensation worth US$323k over the year to January 2019. It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$323k. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$11m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
This would give shareholders a good impression of the company, since most large companies pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at Veeva Systems has changed over time.
Is Veeva Systems Inc. Growing?
On average over the last three years, Veeva Systems Inc. has grown earnings per share (EPS) by 44% each year (using a line of best fit). Its revenue is up 26% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. It could be important to check this free visual depiction of what analysts expect for the future.
Has Veeva Systems Inc. Been A Good Investment?
Most shareholders would probably be pleased with Veeva Systems Inc. for providing a total return of 246% over three years. 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.
It appears that Veeva Systems Inc. remunerates its CEO below most large companies.
Since the business is growing, many would argue this suggests the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Peter Gassner deserves a raise! It is relatively rare to see a modestly paid CEO when performance is so impressive. It would be even more positive if company insiders are buying shares. So you may want to check if insiders are buying Veeva Systems shares with their own money (free access).
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.