Orion Energy Systems, Inc.'s (NASDAQ:OESX) CEO Compensation Is Looking A Bit Stretched At The Moment

July 29, 2021
  •  Updated
September 30, 2022
NasdaqCM:OESX
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Performance at Orion Energy Systems, Inc. (NASDAQ:OESX) has been reasonably good and CEO Mike Altschaefl has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 05 August 2021. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Orion Energy Systems

How Does Total Compensation For Mike Altschaefl Compare With Other Companies In The Industry?

At the time of writing, our data shows that Orion Energy Systems, Inc. has a market capitalization of US$156m, and reported total annual CEO compensation of US$1.3m for the year to March 2021. We note that's an increase of 38% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$403k.

In comparison with other companies in the industry with market capitalizations ranging from US$100m to US$400m, the reported median CEO total compensation was US$527k. Accordingly, our analysis reveals that Orion Energy Systems, Inc. pays Mike Altschaefl north of the industry median. Moreover, Mike Altschaefl also holds US$4.1m worth of Orion Energy Systems stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component20212020Proportion (2021)
Salary US$403k US$335k 31%
Other US$902k US$607k 69%
Total CompensationUS$1.3m US$942k100%

On an industry level, roughly 23% of total compensation represents salary and 77% is other remuneration. Orion Energy Systems is paying a higher share of its remuneration through a salary in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation
NasdaqCM:OESX CEO Compensation July 30th 2021

A Look at Orion Energy Systems, Inc.'s Growth Numbers

Orion Energy Systems, Inc.'s earnings per share (EPS) grew 106% per year over the last three years. Its revenue is down 23% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Orion Energy Systems, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Orion Energy Systems, Inc. for providing a total return of 380% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 2 warning signs for Orion Energy Systems (1 is a bit unpleasant!) that you should be aware of before investing here.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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