Doug Valenti has been the CEO of QuinStreet, Inc. (NASDAQ:QNST) since 1999. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Doug Valenti’s Compensation Compare With Similar Sized Companies?
According to our data, QuinStreet, Inc. has a market capitalization of US$645m, and paid its CEO total annual compensation worth US$1.6m over the year to June 2018. While we always look at total compensation first, we note that the salary component is less, at US$541k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from US$400m to US$1.6b, we found the median CEO total compensation was US$2.7m.
Most shareholders would consider it a positive that Doug Valenti takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at QuinStreet has changed over time.
Is QuinStreet, Inc. Growing?
QuinStreet, Inc. has increased its earnings per share (EPS) by an average of 122% a year, over the last three years (using a line of best fit). It achieved revenue growth of 13% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. It could be important to check this free visual depiction of what analysts expect for the future.
Has QuinStreet, Inc. Been A Good Investment?
Most shareholders would probably be pleased with QuinStreet, Inc. for providing a total return of 313% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
It appears that QuinStreet, Inc. remunerates its CEO below most similar sized companies.
Since the business is growing, many would argue this suggests the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Doug Valenti deserves a raise! It’s not often we see shareholders do so well, and yet the CEO is paid modestly. The cherry on top would be if company insiders are buying shares with their own money. So you may want to check if insiders are buying QuinStreet shares with their own money (free access).
Important note: QuinStreet may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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If you spot an error that warrants correction, please contact the editor at email@example.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.