Udi Mokady has been the CEO of CyberArk Software Ltd. (NASDAQ:CYBR) since 2005. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 Udi Mokady's Compensation Compare With Similar Sized Companies?
According to our data, CyberArk Software Ltd. has a market capitalization of US$3.9b, and paid its CEO total annual compensation worth US$6.7m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$375k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO total compensation of that group was US$5.1m.
It would therefore appear that CyberArk Software Ltd. pays Udi Mokady more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at CyberArk Software, below.
Is CyberArk Software Ltd. Growing?
On average over the last three years, CyberArk Software Ltd. has grown earnings per share (EPS) by 21% each year (using a line of best fit). It achieved revenue growth of 32% 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 CyberArk Software Ltd. Been A Good Investment?
I think that the total shareholder return of 124%, over three years, would leave most CyberArk Software Ltd. shareholders smiling. 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.
We compared total CEO remuneration at CyberArk Software Ltd. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. Shareholders may want to check for free if CyberArk Software insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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