Yahoo Finance What Did EPAM Systems' (NYSE:EPAM) CEO Take Home Last Year?
Arkadiy Dobkin became the CEO of EPAM Systems, Inc. (NYSE:EPAM) in 2002, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for EPAM Systems.
Check out our latest analysis for EPAM Systems
How Does Total Compensation For Arkadiy Dobkin Compare With Other Companies In The Industry?
Our data indicates that EPAM Systems, Inc. has a market capitalization of US$18b, and total annual CEO compensation was reported as US$4.3m for the year to December 2019. Notably, that's an increase of 14% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$588k.
In comparison with other companies in the industry with market capitalizations over US$8.0b , the reported median total CEO compensation was US$11m. This suggests that Arkadiy Dobkin is paid below the industry median. Furthermore, Arkadiy Dobkin directly owns US$592m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$588k | US$538k | 14% |
Other | US$3.7m | US$3.2m | 86% |
Total Compensation | US$4.3m | US$3.8m | 100% |
On an industry level, roughly 14% of total compensation represents salary and 86% is other remuneration. Although there is a difference in how total compensation is set, EPAM Systems more or less reflects the market in terms of setting the salary. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at EPAM Systems, Inc.'s Growth Numbers
EPAM Systems, Inc.'s earnings per share (EPS) grew 32% per year over the last three years. It achieved revenue growth of 19% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has EPAM Systems, Inc. Been A Good Investment?
Boasting a total shareholder return of 210% over three years, EPAM Systems, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
As previously discussed, Arkadiy is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. Since EPS growth is heading in a positive direction; many would agree with our assessment that the pay is modest. Given the strong history of shareholder returns, the shareholders are probably very happy with Arkadiy's performance.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for EPAM Systems that investors should look into moving forward.
Switching gears from EPAM Systems, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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