Steve Rizzone became the CEO of Energous Corporation (NASDAQ:WATT) in 2013. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Steve Rizzone’s Compensation Compare With Similar Sized Companies?
Our data indicates that Energous Corporation is worth US$51m, and total annual CEO compensation was reported as US$652k for the year to December 2018. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$365k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$530k.
So Steve Rizzone is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Energous, below.
Is Energous Corporation Growing?
Energous Corporation has increased its earnings per share (EPS) by an average of 17% a year, over the last three years (using a line of best fit). It saw its revenue drop 57% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Energous Corporation Been A Good Investment?
With a three year total loss of 89%, Energous Corporation would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
Steve Rizzone is paid around what is normal the leaders of comparable size companies.
We’d say the company can boast of its EPS growth, but we cannot say the same about the lacklustre shareholder returns (over the last three years). Considering the the positives we don’t think the CEO pays is too high, but it’s certainly hard to argue it is too low. Shareholders may want to check for free if Energous insiders are buying or selling shares.
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.
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.
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