Joe Mitchell became the CEO of UQM Technologies, Inc. (NYSEMKT:UQM) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Joe Mitchell’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that UQM Technologies, Inc. has a market cap of US$50m, and is paying total annual CEO compensation of US$762k. (This figure is for the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$345k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$307k.
It would therefore appear that UQM Technologies, Inc. pays Joe Mitchell more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at UQM Technologies has changed from year to year.
Is UQM Technologies, Inc. Growing?
Over the last three years UQM Technologies, Inc. has grown its earnings per share (EPS) by an average of 9.6% per year. Its revenue is up 51% over last year.
I like the look of the strong year-on-year improvement in revenue. Combined with modest EPS growth, we get a good impression of the company. I wouldn’t say this is necessarily top notch growth, but it is certainly promising.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has UQM Technologies, Inc. Been A Good Investment?
Boasting a total shareholder return of 38% over three years, UQM Technologies, Inc. has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
We compared the total CEO remuneration paid by UQM Technologies, Inc., and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Over the last three years returns to investors have been great, though we might have liked stronger business growth. Considering this fine result for investors, we daresay the CEO compensation might be apt. Shareholders may want to check for free if UQM Technologies insiders are buying or selling shares.
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
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 firstname.lastname@example.org.