Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
In 1999 Adam Miller was appointed CEO of Cornerstone OnDemand, Inc. (NASDAQ:CSOD). 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Adam Miller’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Cornerstone OnDemand, Inc. has a market cap of US$3.6b, and is paying total annual CEO compensation of US$6.6m. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$500k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$5.2m.
So Adam Miller is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Cornerstone OnDemand, below.
Is Cornerstone OnDemand, Inc. Growing?
On average over the last three years, Cornerstone OnDemand, Inc. has grown earnings per share (EPS) by 29% each year (using a line of best fit). It achieved revenue growth of 8.2% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions.
Has Cornerstone OnDemand, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Cornerstone OnDemand, Inc. for providing a total return of 52% over three years. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.
Remuneration for Adam Miller is close enough to the median pay for a CEO of a similar sized company .
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Cornerstone OnDemand.
If you want to buy a stock that is better than Cornerstone OnDemand, this free list of high return, low debt companies is a great place to look.
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.