How Much Did Bottomline Technologies (de), Inc.'s (NASDAQ:EPAY) CEO Pocket Last Year?
Rob Eberle has been the CEO of Bottomline Technologies (de), Inc. (NASDAQ:EPAY) since 2006. First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Bottomline Technologies (de)
How Does Rob Eberle's Compensation Compare With Similar Sized Companies?
Our data indicates that Bottomline Technologies (de), Inc. is worth US$1.5b, and total annual CEO compensation was reported as US$8.4m for the year to June 2019. We think total compensation is more important but we note that the CEO salary is lower, at US$392k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. 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$4.6m.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Bottomline Technologies (de) stands. On a sector level, around 13% of total compensation represents salary and 87% is other remuneration. Investors will find it intriguing that Bottomline Technologies (de) paid a marginal salary to Rob Eberle, over the past year, focusing on non-salary compensation instead.
As you can see, Rob Eberle is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Bottomline Technologies (de), 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. The graphic below shows how CEO compensation at Bottomline Technologies (de) has changed from year to year.
Is Bottomline Technologies (de), Inc. Growing?
Over the last three years Bottomline Technologies (de), Inc. has seen earnings per share (EPS) move in a positive direction by an average of 104% per year (using a line of best fit). Its revenue is up 4.7% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.
Has Bottomline Technologies (de), Inc. Been A Good Investment?
Boasting a total shareholder return of 51% over three years, Bottomline Technologies (de), Inc. has done well by shareholders. 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.
In Summary...
We examined the amount Bottomline Technologies (de), Inc. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. Looking into other areas, we've picked out 4 warning signs for Bottomline Technologies (de) that investors should think about before committing capital to this stock.
If you want to buy a stock that is better than Bottomline Technologies (de), this free list of high return, low debt companies is a great place to look.
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.
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. Thank you for reading.
