We compared CEO compensation for the PLM Software sector. PTC (ticker: PTC) CEO Jim Heppelmann is the group outlier as his compensation is 3x the group average and 4x that of the CEO of the largest company in the group (by market value), Autodesk (ticker: ADSK) CEO Andrew Anagnost. See below for additional detail. https://soundcloud.com/ceorater
When a company Founder & CEO whom owns 14% of the company's equity pays himself $211 million (the approximate equivalent of one quarter's revenue), it sends the wrong message to the management team and employees (not to mention shareholders). Perhaps if Paycom Software (ticker: PAYC) were doubling Revenues and EBITDA each year for five or … Continue reading CEO Compensation Ought To Tightly Align With Company Performance
We are introducing CEORater's initial CEO Risk Report ("CRR") which may be accessed at the end of this note. (Readers who access this note via email will be required to click the "read more" button in order to access the report). CEORater's CRR details companies and CEOs that CEORater believes carry elevated risk, primarily within … Continue reading CEORater CEO Risk ReportPremium
Speaking of value names, have you looked at Chubb (tkr: CB)? 9x EV trailing Operating Cash Flow ("OCF"), 27% OCF margins and a 13% cash flow yield. Recurring revenue, technology-infused companies like Chubb will eventually enjoy a Valuation Makeover as we wrote in June 2019. Recall that ACE acquired Chubb in 2015 for $28B and … Continue reading Have You Looked at Chubb?
We believe that when company's explicitly state their values it becomes easier to attract talent that is aligned with the company. Ambiguity around employee performance expectations is minimized when corporate values are clearly stated. This transparency is necessary in order for a company to achieve its full operating potential. Below we provide several example of … Continue reading Corporate Value Transparency Paves The Way For High Performance Companies
We have been consistently critical of Boeing's (tkr: BA), Board of Directors and CEO David Calhoun (links to those articles below). Should Boeing's Board decide to replace Mr. Calhoun (it ought to replace itself first), we recommend that the Board look to the IT Services industry for a replacement CEO. The airplane design and manufacture … Continue reading Boeing Should Look To The IT Services Industry For A New CEO
Legacy payments companies still have not fully embraced mobile applications. For example, Global Payments (tkr: GPN) chooses to white label certain mobile payment applications from Apriva rather than fully own its technology stack. All mobile applications are not created equal. The user experience differs dramatically across mobile apps and is primarily a function of the … Continue reading It’s Difficult For Legacy Payments Companies To Learn New Tricks
MicroStrategy (tkr: MSTR), founder and CEO Michael Saylor has consistently promoted Bitcoin for the past year plus. There is hardly a business network nor crypto-dedicated YouTube channel that hasn't had Mr. Saylor on to promote Bitcoin as MSTR has stockpiled more of the digital currency than any other public company. So what about MSTR's core … Continue reading Is Michael Saylor Running A Software Company Or A Bitcoin Fund?
Merck CFO Robert Davis (CEORater Profile Here), will become Merck CEO in June. Mr. Davis has real operating experience outside of his CFO role as he also serves as EVP, Global Services. In addition to Finance, IT, Procurement and Real Estate Operations - common responsibilities for a number of CFOs - Mr. Davis's responsibilities also … Continue reading Merck’s New CEO More Than A CFO
Read on for our "Tip for Investors" CEOs and CFOs can help spur innovation by creating a culture that values innovation. One such example is tying a portion of variable compensation to new product development (thinking of Tech companies). However, it is the Business Unit leaders and Product Managers ("PMs"), in particular that are responsible … Continue reading Innovation Does Not Happen In The C-Suite