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Should You Worry About Glaukos Corporation's (NYSE:GKOS) CEO Pay?

Thomas Burns became the CEO of Glaukos Corporation (NYSE:GKOS) in 2002. 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. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Glaukos

How Does Thomas Burns's Compensation Compare With Similar Sized Companies?

According to our data, Glaukos Corporation has a market capitalization of US$2.7b, and pays its CEO total annual compensation worth US$5.2m. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at US$625k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$5.1m.

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So Thomas Burns is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at Glaukos, below.

NYSE:GKOS CEO Compensation, August 8th 2019
NYSE:GKOS CEO Compensation, August 8th 2019

Is Glaukos Corporation Growing?

Over the last three years Glaukos Corporation has grown its earnings per share (EPS) by an average of 15% per year (using a line of best fit). It achieved revenue growth of 19% over the last year.

This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. You might want to check this free visual report on analyst forecasts for future earnings.

Has Glaukos Corporation Been A Good Investment?

Most shareholders would probably be pleased with Glaukos Corporation for providing a total return of 119% over three years. 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...

Thomas Burns 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. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Glaukos.

If you want to buy a stock that is better than Glaukos, this free list of high return, low debt companies is a great place to look.

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.