Yahoo Finance We Think Shareholders Will Probably Be Generous With PTC Inc.'s (NASDAQ:PTC) CEO Compensation
We have been pretty impressed with the performance at PTC Inc. (NASDAQ:PTC) recently and CEO Jim Heppelmann deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 16 February 2023. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.
See our latest analysis for PTC
Comparing PTC Inc.'s CEO Compensation With The Industry
At the time of writing, our data shows that PTC Inc. has a market capitalization of US$16b, and reported total annual CEO compensation of US$13m for the year to September 2022. That is, the compensation was roughly the same as last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$881k.
In comparison with other companies in the American Software industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$14m. This suggests that PTC remunerates its CEO largely in line with the industry average. Moreover, Jim Heppelmann also holds US$124m worth of PTC stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2022 | 2021 | Proportion (2022) |
Salary | US$881k | US$800k | 7% |
Other | US$12m | US$12m | 93% |
Total Compensation | US$13m | US$13m | 100% |
On an industry level, around 9% of total compensation represents salary and 91% is other remuneration. PTC pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
PTC Inc.'s Growth
PTC Inc.'s earnings per share (EPS) grew 59% per year over the last three years. It achieved revenue growth of 5.8% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has PTC Inc. Been A Good Investment?
Boasting a total shareholder return of 55% over three years, PTC Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 3 warning signs for PTC that investors should look into moving forward.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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