Frank Laukien became the CEO of Bruker Corporation (NASDAQ:BRKR) in 1991. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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 Frank Laukien’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Bruker Corporation has a market cap of US$6.4b, and is paying total annual CEO compensation of US$4.5m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$731k. When we examined a selection of companies with market caps ranging from US$4.0b to US$12b, we found the median CEO total compensation was US$6.8m.
A first glance this seems like a real positive for shareholders, since Frank Laukien is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at Bruker, below.
Is Bruker Corporation Growing?
Bruker Corporation has increased its earnings per share (EPS) by an average of 8.2% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 7.1%.
I’d prefer higher revenue growth, but I’m happy with the modest EPS growth. Considering these factors I’d say performance has been pretty decent, though not amazing.
Has Bruker Corporation Been A Good Investment?
Boasting a total shareholder return of 91% over three years, Bruker Corporation has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
It looks like Bruker Corporation pays its CEO less than similar sized companies.
It’s well worth noting that while Frank Laukien is paid below what is normal at companies of similar size, the returns have been very pleasing, over the last three years. Although we could see higher growth, we’d argue the remuneration is modest, based on these observations. Shareholders may want to check for free if Bruker insiders are buying or selling shares.
Important note: Bruker may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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