Yahoo Finance Does RingCentral, Inc.'s (NYSE:RNG) CEO Salary Compare Well With Others?
In 1999 Vlad Shmunis was appointed CEO of RingCentral, Inc. (NYSE:RNG). First, this article will compare CEO compensation with compensation at other large companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for RingCentral
How Does Vlad Shmunis's Compensation Compare With Similar Sized Companies?
Our data indicates that RingCentral, Inc. is worth US$12b, and total annual CEO compensation is US$7.9m. (This figure is for the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$544k. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$11m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
So Vlad Shmunis is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at RingCentral has changed over time.
Is RingCentral, Inc. Growing?
On average over the last three years, RingCentral, Inc. has shrunk earnings per share by 4.0% each year (measured with a line of best fit). In the last year, its revenue is up 34%.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. You might want to check this free visual report on analyst forecasts for future earnings.
Has RingCentral, Inc. Been A Good Investment?
Most shareholders would probably be pleased with RingCentral, Inc. for providing a total return of 549% 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.
In Summary...
Remuneration for Vlad Shmunis is close enough to the median pay for a CEO of a large company .
While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So considering most shareholders would be happy, we'd say the CEO pay is appropriate. Shareholders may want to check for free if RingCentral insiders are buying or selling shares.
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.
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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.
