Decent performance at Workiva Inc. (NYSE: WK) Recently will appeal to most shareholders as the AGM on June 3, 2021 approaches. The focus will likely be on future strategic initiatives that the board and management put in place to improve company rather than executive compensation when they vote on company resolutions. In our analysis below, we explain why we think CEO compensation looks acceptable and the case for a raise.
Discover our latest analyzes for Workiva
How does Marty Vanderploeg’s total compensation compare to other companies in the industry?
At the time of writing, our data shows that Workiva Inc. has a market capitalization of US $ 4.8 billion and reported total annual CEO compensation of US $ 3.6 million for the year to date. ‘in December 2020. This is a notable drop of 18% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US $ 690,000.
Looking at similar-sized companies in the industry with market capitalizations between US $ 2.0 billion and US $ 6.4 billion, we found that the median total compensation of CEOs in this group was US $ 5.6 million. As a result, Workiva pays its CEO below the industry median. Additionally, Marty Vanderploeg owns $ 294 million in company stock in his own name, indicating that they have a lot of skin in the game.
|Salary||US $ 690K||US $ 690K||19%|
|Other||2.9 million USD||3.7 million USD||81%|
|Total compensation||3.6 million USD||4.4 million USD||100%|
In terms of industry, salary made up around 11% of total compensation for all the companies we analyzed, while other compensation made up 89% of the pie. According to our research, Workiva allocated a higher percentage of salary to salary compared to the industry as a whole. If the total compensation is oriented towards non-salary benefits, this indicates that the CEO’s compensation is linked to the performance of the company.
Growth of Workiva Inc.
Workiva Inc.’s earnings per share (EPS) have grown 6.5% per year over the past three years. It has achieved 18% revenue growth over the past year.
We think the revenue growth is good. And the modest growth in BPA isn’t bad either. Although we will stop before qualifying the stock as more successful, we believe that the company has potential. Historical performance can sometimes be a good indicator of what’s to come, but if you want to look into the future of the business, this might be of interest to you. free viewing analyst forecasts.
Has Workiva Inc. been a good investment?
We believe the 267% three-year total shareholder return would put a smile on the face of most Workiva Inc. shareholders.This strong performance could mean that some shareholders don’t care that the CEO gets paid more than which is normal for a company of its size.
Overall, the company hasn’t done too badly in terms of performance, but we would like to see an improvement. If it manages to keep the current trend going, CEO compensation may well be one of shareholders’ least concerns. In fact, strategic decisions that could impact the future of the business could be a much more interesting topic for investors, as it would help them set their long-term expectations.
We can learn a lot about a business by studying the compensation trends of its CEOs, as well as looking at other aspects of the business. We did our research and identified 4 warning signs (and 1 that shouldn’t be ignored) in Workiva, we think you should know.
Gear shifting from Workiva, if you’re looking for a crisp balance sheet and premium returns, this free The list of high yield, low debt companies is a good place to look.
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