We Think The Compensation For Couchbase, Inc.'s (NASDAQ:BASE) CEO Looks About Right

Key Insights

• Couchbase's Annual General Meeting to take place on 29th of May
• Total pay for CEO Matt Cain includes US$535.0k salary
• Total compensation is similar to the industry average
• Couchbase's total shareholder return over the past three years was 45% while its EPS grew by 6.9% over the past three years

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Under the guidance of CEO Matt Cain, Couchbase, Inc. (NASDAQ:BASE) has performed reasonably well recently. As shareholders go into the upcoming AGM on 29th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

View our latest analysis for Couchbase

How Does Total Compensation For Matt Cain Compare With Other Companies In The Industry?

According to our data, Couchbase, Inc. has a market capitalization of US$972m, and paid its CEO total annual compensation worth US$8.7m over the year to January 2025. Notably, that's a decrease of 20% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$535k.

On examining similar-sized companies in the American IT industry with market capitalizations between US$400m and US$1.6b, we discovered that the median CEO total compensation of that group was US$7.5m. So it looks like Couchbase compensates Matt Cain in line with the median for the industry. What's more, Matt Cain holds US$2.4m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 16% of total compensation represents salary and 84% is other remuneration. In Couchbase's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Couchbase, Inc.'s Growth

Couchbase, Inc. has seen its earnings per share (EPS) increase by 6.9% a year over the past three years. It achieved revenue growth of 16% over the last year.

This revenue growth could really point to a brighter future. And the improvement in EPSis modest but respectable. Although we'll stop short of calling the stock a top performer, we think the company has potential. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Couchbase, Inc. Been A Good Investment?

We think that the total shareholder return of 45%, over three years, would leave most Couchbase, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Couchbase that investors should look into moving forward.

Important note: Couchbase 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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.