Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Geoffrey S. Hedrick became the CEO of Innovative Solutions and Support, Inc. (NASDAQ:ISSC) in 2008. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Geoffrey S. Hedrick’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Innovative Solutions and Support, Inc. has a market cap of US$72m, and is paying total annual CEO compensation of US$406k. (This is based on the year to September 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$400k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$452k.
So Geoffrey S. Hedrick is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Innovative Solutions and Support, below.
Is Innovative Solutions and Support, Inc. Growing?
On average over the last three years, Innovative Solutions and Support, Inc. has shrunk earnings per share by 26% each year (measured with a line of best fit). It saw its revenue drop -2.4% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the impression is worse when you consider revenue is down year-on-year. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don’t have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Innovative Solutions and Support, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Innovative Solutions and Support, Inc. for providing a total return of 44% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Geoffrey S. Hedrick is paid around the same as most CEOs of similar size companies.
The company isn’t growing earnings per share, but shareholder returns have been strong over the last three years. So we think most shareholders wouldn’t be too worried about CEO compensation, which is close to the median for similar sized companies. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Innovative Solutions and Support (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.