Chuck Cargile has been the CEO of Sunworks, Inc. (NASDAQ:SUNW) since 2017. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Chuck Cargile’s Compensation Compare With Similar Sized Companies?
Our data indicates that Sunworks, Inc. is worth US$5.0m, and total annual CEO compensation was reported as US$604k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$300k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$523k.
So Chuck Cargile receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Sunworks has changed from year to year.
Is Sunworks, Inc. Growing?
On average over the last three years, Sunworks, Inc. has grown earnings per share (EPS) by 17% each year (using a line of best fit). It saw its revenue drop 8.9% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. You might want to check this free visual report on analyst forecasts for future earnings.
Has Sunworks, Inc. Been A Good Investment?
With a three year total loss of 93%, Sunworks, Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
Chuck Cargile is paid around what is normal the leaders of comparable size companies.
We think that the EPS growth is very pleasing, but we find the returns over the last three years to be lacking. We’d be surprised if shareholders want to see a pay rise for the CEO, but we’d stop short of calling their pay too generous. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Sunworks.
If you want to buy a stock that is better than Sunworks, this free list of high return, low debt companies is a great place to look.
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