Patrizio Vinciarelli became the CEO of Vicor Corporation (NASDAQ:VICR) in 1981. 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Patrizio Vinciarelli’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Vicor Corporation has a market cap of US$1.2b, and is paying total annual CEO compensation of US$444k. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$390k. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO total compensation was US$4.1m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it’s important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Vicor, below.
Is Vicor Corporation Growing?
On average over the last three years, Vicor Corporation has grown earnings per share (EPS) by 117% each year (using a line of best fit). It achieved revenue growth of 10% over the last year.
This demonstrates that the company has been improving recently. A good result. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.
Has Vicor Corporation Been A Good Investment?
I think that the total shareholder return of 201%, over three years, would leave most Vicor Corporation shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.
Vicor Corporation is currently paying its CEO below what is normal for companies of its size. Many would consider this to indicate that the pay is modest since the business is growing. And given most shareholders are probably very happy with recent returns, you might even think that Patrizio Vinciarelli deserves a raise!
It’s not often we see shareholders do so well, and yet the CEO is paid modestly. The cherry on top would be if company insiders are buying shares with their own money. Shareholders may want to check for free if Vicor insiders are buying or selling shares.
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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