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Andrew Cogan has been the CEO of Knoll, Inc. (NYSE:KNL) since 2001. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Andrew Cogan’s Compensation Compare With Similar Sized Companies?
Our data indicates that Knoll, Inc. is worth US$1.0b, and total annual CEO compensation is US$4.5m. (This figure is for the year to December 2018). We note that’s an increase of 12% above last year. While we always look at total compensation first, we note that the salary component is less, at US$1.0m. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO total compensation was US$2.7m.
Thus we can conclude that Andrew Cogan receives more in total compensation than the median of a group of companies in the same market, and of similar size to Knoll, Inc.. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Knoll, below.
Is Knoll, Inc. Growing?
Over the last three years Knoll, Inc. has grown its earnings per share (EPS) by an average of 2.5% per year (using a line of best fit). It achieved revenue growth of 14% over the last year.
I think the revenue growth is good. And, while modest, the earnings per share growth is noticeable. So while performance isn’t amazing, we think it really does seem quite respectable. You might want to check this free visual report on analyst forecasts for future earnings.
Has Knoll, Inc. Been A Good Investment?
With a three year total loss of 10%, Knoll, Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared the total CEO remuneration paid by Knoll, Inc., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. This doesn’t look great when you consider CEO remuneration is up on last year. Shareholders may wish to consider further research. Although we don’t think the CEO pay is too high, it is probably more on the generous side of things. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Knoll.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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 email@example.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.