Desmond Wheatley became the CEO of Envision Solar International, Inc. (NASDAQ:EVSI) in 2011. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Envision Solar International
How Does Desmond Wheatley's Compensation Compare With Similar Sized Companies?
According to our data, Envision Solar International, Inc. has a market capitalization of US$29m, and paid its CEO total annual compensation worth US$250k over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$200k. 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$498k.
Most shareholders would consider it a positive that Desmond Wheatley takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at Envision Solar International has changed over time.
Is Envision Solar International, Inc. Growing?
On average over the last three years, Envision Solar International, Inc. has shrunk earnings per share by 6.6% each year (measured with a line of best fit). In the last year, its revenue is up 24%.
Sadly for shareholders, earnings per share are actually down, over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO.
Has Envision Solar International, Inc. Been A Good Investment?
Since shareholders would have lost about 29% over three years, some Envision Solar International, Inc. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
It appears that Envision Solar International, Inc. remunerates its CEO below most similar sized companies.
Shareholders should note that compensation for Desmond Wheatley is under the median of a group of similar sized companies. But then, EPS growth is lacking and so are the returns to shareholders. While one could argue it is appropriate for the CEO to be paid less than other CEOs of similar sized companies, given company performance, we would not call the pay overly generous. So you may want to check if insiders are buying Envision Solar International shares with their own money (free access).
If you want to buy a stock that is better than Envision Solar International, this free list of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.