Yahoo Finance Here's What We Think About Rapid7, Inc.'s (NASDAQ:RPD) CEO Pay
In 2012 Corey Thomas was appointed CEO of Rapid7, Inc. (NASDAQ:RPD). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
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See our latest analysis for Rapid7
How Does Corey Thomas's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Rapid7, Inc. has a market cap of US$2.5b, and is paying total annual CEO compensation of US$5.0m. (This is based on the year to December 2018). We note that's an increase of 96% above last year. While we always look at total compensation first, we note that the salary component is less, at US$350k. 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$5.2m.
So Corey Thomas 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 a visual representation of the CEO compensation at Rapid7, below.
Is Rapid7, Inc. Growing?
Rapid7, Inc. has increased its earnings per share (EPS) by an average of 26% a year, over the last three years (using a line of best fit). Its revenue is up 25% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. 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 Rapid7, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Rapid7, Inc. for providing a total return of 357% 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...
Corey Thomas is paid around what is normal the leaders of comparable size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Rapid7 (free visualization of insider trades).
If you want to buy a stock that is better than Rapid7, 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.
