Yahoo Finance Is Somero Enterprises, Inc.'s (LON:SOM) CEO Paid At A Competitive Rate?
In 1997 Jack Cooney was appointed CEO of Somero Enterprises, Inc. (LON:SOM). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.
Check out 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£146m, and total annual CEO compensation was reported as US$746k for the year to December 2018. 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$602k.
That means Jack Cooney receives fairly typical remuneration for the CEO of a company that size. 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 Somero Enterprises, below.
Is Somero Enterprises, Inc. Growing?
Over the last three years Somero Enterprises, Inc. has grown its earnings per share (EPS) by an average of 15% per year (using a line of best fit). In the last year, its revenue changed by just 0.2%.
This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. Shareholders might be interested in this free visualization of analyst forecasts.
Has Somero Enterprises, Inc. Been A Good Investment?
With a total shareholder return of 24% over three years, Somero Enterprises, Inc. shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
Jack Cooney is paid around what is normal the leaders of comparable size companies.
We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. So upon reflection one could argue that the CEO pay is quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Somero Enterprises (free visualization of insider trades).
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.
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.
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