Brian Faith has been the CEO of QuickLogic Corporation (NASDAQ:QUIK) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. 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.
How Does Brian Faith’s Compensation Compare With Similar Sized Companies?
Our data indicates that QuickLogic Corporation is worth US$31m, and total annual CEO compensation was reported as US$919k for the year to December 2018. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$260k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$505k.
As you can see, Brian Faith is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean QuickLogic Corporation is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at QuickLogic has changed over time.
Is QuickLogic Corporation Growing?
Over the last three years QuickLogic Corporation has grown its earnings per share (EPS) by an average of 27% per year (using a line of best fit). Its revenue is down 14% over last year.
This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. Shareholders might be interested in this free visualization of analyst forecasts.
Has QuickLogic Corporation Been A Good Investment?
Given the total loss of 71% over three years, many shareholders in QuickLogic Corporation are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
We examined the amount QuickLogic Corporation pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. Having said that, shareholders may be disappointed with the weak returns over the last three years. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. So you may want to check if insiders are buying QuickLogic 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.
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