Yahoo Finance Does Coupa Software Incorporated's (NASDAQ:COUP) CEO Pay Reflect Performance?
Rob Bernshteyn became the CEO of Coupa Software Incorporated (NASDAQ:COUP) in 2009. First, this article will compare CEO compensation with compensation at similar sized companies. 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.
Check out our latest analysis for Coupa Software
How Does Rob Bernshteyn's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Coupa Software Incorporated has a market cap of US$8.3b, and reported total annual CEO compensation of US$9.1m for the year to January 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$425k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$4.0b to US$12b. The median total CEO compensation was US$6.9m.
It would therefore appear that Coupa Software Incorporated pays Rob Bernshteyn 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. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Coupa Software has changed from year to year.
Is Coupa Software Incorporated Growing?
Over the last three years Coupa Software Incorporated has grown its earnings per share (EPS) by an average of 79% per year (using a line of best fit). Its revenue is up 46% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Coupa Software Incorporated Been A Good Investment?
Most shareholders would probably be pleased with Coupa Software Incorporated for providing a total return of 420% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
We compared total CEO remuneration at Coupa Software Incorporated with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Coupa Software.
If you want to buy a stock that is better than Coupa Software, 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 editorial-team@simplywallst.com. 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.
