Shareholders Would Not Be Objecting To The Cooper Companies, Inc.'s (NYSE:COO) CEO Compensation And Here's Why

The performance at The Cooper Companies, Inc. (NYSE:COO) has been quite strong recently and CEO Al White has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 17 March 2021. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Check out our latest analysis for Cooper Companies

Comparing The Cooper Companies, Inc.'s CEO Compensation With the industry

Our data indicates that The Cooper Companies, Inc. has a market capitalization of US$19b, and total annual CEO compensation was reported as US$9.6m for the year to October 2020. Notably, that's an increase of 24% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$925k.

For comparison, other companies in the industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$10m. From this we gather that Al White is paid around the median for CEOs in the industry. What's more, Al White holds US$16m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2020	2019	Proportion (2020)
Salary	US$925k	US$925k	10%
Other	US$8.7m	US$6.8m	90%
Total Compensation	US$9.6m	US$7.7m	100%

Speaking on an industry level, nearly 23% of total compensation represents salary, while the remainder of 77% is other remuneration. In Cooper Companies' case, non-salary compensation represents a greater slice of total remuneration, in comparison 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.

The Cooper Companies, Inc.'s Growth

The Cooper Companies, Inc. has seen its earnings per share (EPS) increase by 134% a year over the past three years. It saw its revenue drop 7.7% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has The Cooper Companies, Inc. Been A Good Investment?

Most shareholders would probably be pleased with The Cooper Companies, Inc. for providing a total return of 64% 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.

To Conclude...

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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Cooper Companies that you should be aware of before investing.

Important note: Cooper Companies is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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