Is Brooks Automation, Inc.'s (NASDAQ:BRKS) CEO Paid At A Competitive Rate?

Steve Schwartz became the CEO of Brooks Automation, Inc. (NASDAQ:BRKS) in 2010. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Brooks Automation

How Does Steve Schwartz's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Brooks Automation, Inc. has a market cap of US$2.3b, and is paying total annual CEO compensation of US$3.9m. (This is based on the year to September 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$644k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$3.7m.

That means Steve Schwartz receives fairly typical remuneration for the CEO of a company that size. 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 Brooks Automation, below.

NasdaqGS:BRKS CEO Compensation, April 23rd 2019
NasdaqGS:BRKS CEO Compensation, April 23rd 2019

Is Brooks Automation, Inc. Growing?

Over the last three years Brooks Automation, Inc. has grown its earnings per share (EPS) by an average of 89% per year (using a line of best fit). It achieved revenue growth of 31% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. You might want to check this free visual report on analyst forecasts for future earnings.

Has Brooks Automation, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Brooks Automation, Inc. for providing a total return of 235% 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.

In Summary...

Steve Schwartz is paid around the same as most CEOs of similar size companies.

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Brooks Automation (free visualization of insider trades).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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 editorial-team@simplywallst.com. 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.

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