Vlad Shmunis has been the CEO of RingCentral Inc (NYSE:RNG) since 1999. 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 process should give us an idea about how appropriately the CEO is paid.
How Does Vlad Shmunis’s Compensation Compare With Similar Sized Companies?
According to our data, RingCentral Inc has a market capitalization of US$5.7b, and pays its CEO total annual compensation worth US$5.6m. (This number is for the twelve months until 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$525k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$4.0b to US$12b. The median total CEO compensation was US$6.9m.
So Vlad Shmunis 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, below, how CEO compensation at RingCentral has changed over time.
Is RingCentral Inc Growing?
RingCentral Inc has increased its earnings per share (EPS) by an average of 5.7% a year, over the last three years In the last year, its revenue is up 34%.
It’s hard to interpret the strong revenue growth as anything other than a positive. Combined with modest EPS growth, we get a good impression of the company. I wouldn’t say this is necessarily top notch growth, but it is certainly promising.
It could be important to check this free visual depiction of what analysts expect for the future.
Has RingCentral Inc Been A Good Investment?
I think that the total shareholder return of 211%, over three years, would leave most RingCentral Inc shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
Vlad Shmunis is paid around what is normal the leaders of comparable size companies.
The company isn’t showing particularly great growth, but shareholder returns have been pleasing. So all things considered I’d venture that the CEO pay is appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling RingCentral (free visualization of insider trades).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.