TEK2day

Operating at the Intersection of Technology and the Capital Markets

    Tag: Executive Compensation

    • CEOs That Put Themselves First

      “G” is the most important letter in “ESG” investing. “G” or “Governance” refers to the men and women who comprise corporate management teams and Boards. Management – the CEO in particular – matters a great deal as to the long-term success of any company. Too frequently CEOs and Boards put Executive Compensation ahead of corporate…

    • Less Downside Protection From Share Buybacks

      As Technology companies prepare to report earnings we expect that a number of companies will curb share repurchase programs given the cost of debt has increased since the Q1 earnings reports of April and May. This will provide less downside protection for Technology names. Treasury yields for the 2-year, the 5-year and the 10-year are…

    • PLM Software CEO Compensation Comparison

      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.

    • CEO Compensation Ought To Tightly Align With Company Performance

      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…

    • Q2’20 Insider Sales Activity

      We selected 62 companies from our CEORater database – primarily Technology companies – to understand which companies had the most insider buying and selling activity during Q2. We then sorted those companies such that the top of the list consists of companies with the most Q2 insider sales activity. Click the image below to access…

    • CVS Health: An Example of Ineffective Executive Compensation Management

      CVS Health (ticker: CVS) provides an example of ineffective executive compensation management. Compensation should reward past performance and encourage behavior that drives desired future results. CEO total compensation growth should not outpace revenue growth nor operating cash flow growth over time. We prefer operating cash flow as a performance metric over Adjusted EBITDA as some…

    • The Most Queried CEOs on CEORater

      We reviewed the most queried CEOs on CEORater.com over the past 12 months. The following is a list of the 20 Most Queried CEOs. Click HERE to access our interactive PowerPoint file. Click HERE to access the interactive PDF version.

    • Operating Cash Flow & Executive Compensation

      Operating Cash Flow growth is a meaningful metric. We believe it should be factored into executive compensation models. Operating Cash Flow matters. Public companies factor annual Revenue growth and EBITDA (Earnings Before Interest Taxes Depreciation and Amortization), or “Adjusted” EBITDA growth into executive compensation plans. We recommend adding Operating Cash Flow (“OCF”) growth to the…

    • CEORater CEO Churn Report

      We analyzed a sample of 30 public companies that experienced CEO Churn over the past 12 months. The companies covered 15 industry verticals. Of the 30 observations, 13 CEO transitions were “Planned” and 17 were “Unplanned”. Companies ranged in size from approximately $1 billion market cap to $989 billion. To access the full 36 page…

    • Here’s How Roper Technologies (tkr: ROP) Can Raise Its Game

      Roper Technologies has generally executed well over the past number of years. We offer three recommendations to Roper for driving superior operational performance and shareholder returns. 1.) Focus the Enterprise Software M&A strategy: This is Priority One. To date Roper has taken a buckshot approach to M&A with acquisitions scattered across the Software landscape. This…