Yahoo Finance Why We Think The CEO Of Exponent, Inc. (NASDAQ:EXPO) May Soon See A Pay Rise
The impressive results at Exponent, Inc. (NASDAQ:EXPO) recently will be great news for shareholders. At the upcoming AGM on 03 June 2021, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.
See our latest analysis for Exponent
How Does Total Compensation For Catherine Corrigan Compare With Other Companies In The Industry?
Our data indicates that Exponent, Inc. has a market capitalization of US$4.7b, and total annual CEO compensation was reported as US$2.7m for the year to January 2021. This means that the compensation hasn't changed much from last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$712k.
On examining similar-sized companies in the industry with market capitalizations between US$2.0b and US$6.4b, we discovered that the median CEO total compensation of that group was US$7.9m. This suggests that Catherine Corrigan is paid below the industry median. Moreover, Catherine Corrigan also holds US$6.1m worth of Exponent stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2021 | 2020 | Proportion (2021) |
Salary | US$712k | US$675k | 27% |
Other | US$2.0m | US$1.9m | 73% |
Total Compensation | US$2.7m | US$2.6m | 100% |
On an industry level, around 23% of total compensation represents salary and 77% is other remuneration. It's interesting to note that Exponent pays out a greater portion of remuneration through salary, compared to the industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Exponent, Inc.'s Growth
Exponent, Inc.'s earnings per share (EPS) grew 25% per year over the last three years. Its revenue is down 2.4% over the previous year.
Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Exponent, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Exponent, Inc. for providing a total return of 90% 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...
Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.
So you may want to check if insiders are buying Exponent shares with their own money (free access).
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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