In 2002 Thomas Burns was appointed CEO of Glaukos Corporation (NYSE:GKOS). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Thomas Burns’s Compensation Compare With Similar Sized Companies?
According to our data, Glaukos Corporation has a market capitalization of US$2.8b, and paid its CEO total annual compensation worth US$5.2m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$625k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO total compensation of that group was US$4.9m.
So Thomas Burns 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.
The graphic below shows how CEO compensation at Glaukos has changed from year to year.
Is Glaukos Corporation Growing?
Over the last three years Glaukos Corporation has shrunk its earnings per share by an average of 106% per year (measured with a line of best fit). In the last year, its revenue is up 33%.
Investors should note that, over three years, earnings per share are down. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching. Shareholders might be interested in this free visualization of analyst forecasts.
Has Glaukos Corporation Been A Good Investment?
Most shareholders would probably be pleased with Glaukos Corporation for providing a total return of 38% over three years. 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.
Thomas Burns is paid around the same as most CEOs of similar size companies.
While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So we can conclude that on this analysis the CEO compensation seems pretty sound. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Glaukos (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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