It's Unlikely That Coupa Software Incorporated's (NASDAQ:COUP) CEO Will See A Huge Pay Rise This Year

Simply Wall St
May 19, 2021
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CEO Rob Bernshteyn has done a decent job of delivering relatively good performance at Coupa Software Incorporated (NASDAQ:COUP) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 26 May 2021. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Coupa Software

How Does Total Compensation For Rob Bernshteyn Compare With Other Companies In The Industry?

At the time of writing, our data shows that Coupa Software Incorporated has a market capitalization of US$17b, and reported total annual CEO compensation of US$16m for the year to January 2021. We note that's an increase of 52% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$546k.

On comparing similar companies in the industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$9.6m. This suggests that Rob Bernshteyn is paid more than the median for the industry. Moreover, Rob Bernshteyn also holds US$48m worth of Coupa Software stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component20212020Proportion (2021)
Salary US$546k US$494k 3%
Other US$16m US$10m 97%
Total CompensationUS$16m US$11m100%

Talking in terms of the industry, salary represented approximately 11% of total compensation out of all the companies we analyzed, while other remuneration made up 89% of the pie. Coupa Software has chosen to walk a path less trodden, opting to compensate its CEO with less of a traditional salary and more non-salary rewards over the last year. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

NasdaqGS:COUP CEO Compensation May 20th 2021

Coupa Software Incorporated's Growth

Over the last three years, Coupa Software Incorporated has shrunk its earnings per share by 38% per year. It achieved revenue growth of 39% over the last year.

The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Coupa Software Incorporated Been A Good Investment?

Most shareholders would probably be pleased with Coupa Software Incorporated for providing a total return of 337% 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...

Coupa Software prefers rewarding its CEO through non-salary benefits. The overall company performance has been commendable, however there are still areas for improvement. EPS growth is still weak, and until that picks up, shareholders may find it hard to approve a pay rise for the CEO, since they are already paid above the average in their industry.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 4 warning signs for Coupa Software (1 doesn't sit too well with us!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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