In 2010 Steve Schwartz was appointed CEO of Brooks Automation, Inc. (NASDAQ:BRKS). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
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$3.1b, and reported total annual CEO compensation of US$3.9m for the year to September 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$644k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO total compensation was US$5.1m.
So Steve Schwartz receives a similar amount to the median CEO pay, amongst 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.
The graphic below shows how CEO compensation at Brooks Automation has changed from year to year.
Is Brooks Automation, Inc. Growing?
Brooks Automation, Inc. has increased its earnings per share (EPS) by an average of 76% a year, over the last three years (using a line of best fit). It achieved revenue growth of 52% over the last year.
This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Brooks Automation, Inc. Been A Good Investment?
I think that the total shareholder return of 252%, over three years, would leave most Brooks Automation, 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.
Steve Schwartz is paid around what is normal the leaders of comparable size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Shareholders may want to check for free if Brooks Automation insiders are buying or selling shares.
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.
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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.