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Bruker Corporation's (NASDAQ:BRKR) CEO Compensation Looks Acceptable To Us And Here's Why

Simply Wall St ·  May 24 06:38

Key Insights

  • Bruker's Annual General Meeting to take place on 30th of May
  • Salary of US$926.1k is part of CEO Frank Laukien's total remuneration
  • Total compensation is similar to the industry average
  • Bruker's total shareholder return over the past three years was 11% while its EPS grew by 27% over the past three years

CEO Frank Laukien has done a decent job of delivering relatively good performance at Bruker Corporation (NASDAQ:BRKR) recently. As shareholders go into the upcoming AGM on 30th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

How Does Total Compensation For Frank Laukien Compare With Other Companies In The Industry?

At the time of writing, our data shows that Bruker Corporation has a market capitalization of US$11b, and reported total annual CEO compensation of US$5.9m for the year to December 2023. Notably, that's an increase of 16% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$926k.

In comparison with other companies in the American Life Sciences industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$7.9m. From this we gather that Frank Laukien is paid around the median for CEOs in the industry. Furthermore, Frank Laukien directly owns US$3.1b worth of shares in the company, implying that they are deeply invested in the company's success.

Component20232022Proportion (2023)
Salary US$926k US$873k 16%
Other US$4.9m US$4.2m 84%
Total CompensationUS$5.9m US$5.1m100%

Speaking on an industry level, nearly 19% of total compensation represents salary, while the remainder of 81% is other remuneration. Bruker sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation
NasdaqGS:BRKR CEO Compensation May 24th 2024

A Look at Bruker Corporation's Growth Numbers

Over the past three years, Bruker Corporation has seen its earnings per share (EPS) grow by 27% per year. Its revenue is up 14% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Bruker Corporation Been A Good Investment?

Bruker Corporation has served shareholders reasonably well, with a total return of 11% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Bruker that you should be aware of before investing.

Switching gears from Bruker, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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