Carl Guild became the CEO of Technical Communications Corporation (NASDAQ:TCCO) in 1998. 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. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Technical Communications
How Does Carl Guild’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Technical Communications Corporation has a market cap of US$6.4m, and is paying total annual CEO compensation of US$298k. (This is based on the year to 2017). It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$285k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO compensation to be US$292k.
That means Carl Guild receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance. Take a look at Technical Communications’s profit growth by viewing this free data-rich visualization of earnings, revenue and cash flow.
You can see, below, how CEO compensation at Technical Communications has changed over time.
Is Technical Communications Corporation Growing?
On average over the last three years, Technical Communications Corporation has grown earnings per share (EPS) by 15% each year. It achieved revenue growth of 35% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.
Has Technical Communications Corporation Been A Good Investment?
With a total shareholder return of 11% over three years, Technical Communications Corporation shareholders would, in general, be reasonably content. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary…
Remuneration for Carl Guild is close enough to the median pay for a CEO of a similar sized company .
We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. So upon reflection one could argue that the CEO pay is quite reasonable. So you may want to check if insiders are buying Technical Communications shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.