Yahoo Finance How Much is Somero Enterprises, Inc.'s (LON:SOM) CEO Getting Paid?
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Jack Cooney became the CEO of Somero Enterprises, Inc. (LON:SOM) in 1997. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Somero Enterprises
How Does Jack Cooney's Compensation Compare With Similar Sized Companies?
Our data indicates that Somero Enterprises, Inc. is worth UK£159m, and total annual CEO compensation is US$746k. (This is based on the year to December 2018). Notably, that's an increase of 24% over the year before. While we always look at total compensation first, we note that the salary component is less, at US$464k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO total compensation of that group was US$690k.
So Jack Cooney receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Somero Enterprises has changed over time.
Is Somero Enterprises, Inc. Growing?
Somero Enterprises, Inc. has increased its earnings per share (EPS) by an average of 20% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 9.8%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Shareholders might be interested in this free visualization of analyst forecasts.
Has Somero Enterprises, Inc. Been A Good Investment?
I think that the total shareholder return of 112%, over three years, would leave most Somero Enterprises, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Jack Cooney is paid around what is normal the leaders of comparable size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling Somero Enterprises shares (free trial).
If you want to buy a stock that is better than Somero Enterprises, 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.
