John Ambroseo became the CEO of Coherent, Inc. (NASDAQ:COHR) in 2002. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does John Ambroseo’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Coherent, Inc. has a market cap of US$3.3b, and is paying total annual CEO compensation of US$9.5m. (This number is for the twelve months until September 2018). That’s less than last year. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$800k. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO compensation of that group was US$4.7m.
As you can see, John Ambroseo is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Coherent, Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Coherent, below.
Is Coherent, Inc. Growing?
Over the last three years Coherent, Inc. has grown its earnings per share (EPS) by an average of 44% per year (using a line of best fit). It saw its revenue drop -2.4% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. Shareholders might be interested in this free visualization of analyst forecasts.
Has Coherent, Inc. Been A Good Investment?
I think that the total shareholder return of 56%, over three years, would leave most Coherent, Inc. shareholders smiling. 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.
We examined the amount Coherent, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Shareholders may want to check for free if Coherent insiders are buying or selling shares.
If you want to buy a stock that is better than Coherent, this free list of high return, low debt companies is a great place to look.
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