Neil Koehler became the CEO of Pacific Ethanol Inc (NASDAQ:PEIX) in 2005. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Neil Koehler’s Compensation Compare With Similar Sized Companies?
Our data indicates that Pacific Ethanol Inc is worth US$64m, and total annual CEO compensation is US$1m. That’s less than last year. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO compensation to be US$297k.
As you can see, Neil Koehler is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Pacific Ethanol Inc is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Pacific Ethanol has changed from year to year.
Is Pacific Ethanol Inc Growing?
Pacific Ethanol Inc has reduced its earnings per share by an average of 41% a year, over the last three years. In the last year, its revenue changed by just 0.01%.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the flat revenue is seriously uninspiring. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Pacific Ethanol Inc Been A Good Investment?
Given the total loss of 76% over three years, many shareholders in Pacific Ethanol Inc are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared total CEO remuneration at Pacific Ethanol Inc with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.Earnings per share have not grown in three years, and the revenue growth fails to impress us.
Arguably worse, investors are without a positive return for the last three years. This analysis suggests to us that the CEO is paid too generously! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Pacific Ethanol Inc (free visualization of insider trades).
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.