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In 2008 Bonnie Anderson was appointed CEO of Veracyte, Inc. (NASDAQ:VCYT). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Bonnie Anderson’s Compensation Compare With Similar Sized Companies?
Our data indicates that Veracyte, Inc. is worth US$1.0b, and total annual CEO compensation is US$2.8m. (This is based on the year to December 2018). We note that’s an increase of 28% above last year. While we always look at total compensation first, we note that the salary component is less, at US$550k. We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO total compensation of that group was US$2.7m.
So Bonnie Anderson receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at Veracyte, below.
Is Veracyte, Inc. Growing?
Veracyte, Inc. has increased its earnings per share (EPS) by an average of 27% a year, over the last three years (using a line of best fit). It achieved revenue growth of 34% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Veracyte, Inc. Been A Good Investment?
I think that the total shareholder return of 303%, over three years, would leave most Veracyte, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Bonnie Anderson is paid around the same as most CEOs of similar size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! So you may want to check if insiders are buying Veracyte shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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 firstname.lastname@example.org. 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.