We Think QuinStreet, Inc.'s (NASDAQ:QNST) CEO Compensation Package Needs To Be Put Under A Microscope

Key Insights

• QuinStreet to hold its Annual General Meeting on 27th of October
• Total pay for CEO Doug Valenti includes US$572.2k salary
• The overall pay is comparable to the industry average
• QuinStreet's three-year loss to shareholders was 39% while its EPS was down 121% over the past three years

Shareholders will probably not be too impressed with the underwhelming results at QuinStreet, Inc. (NASDAQ:QNST) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 27th of October. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for QuinStreet

Comparing QuinStreet, Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that QuinStreet, Inc. has a market capitalization of US$569m, and reported total annual CEO compensation of US$4.8m for the year to June 2023. We note that's an increase of 11% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$572k.

On comparing similar companies from the American Interactive Media and Services industry with market caps ranging from US$200m to US$800m, we found that the median CEO total compensation was US$3.8m. So it looks like QuinStreet compensates Doug Valenti in line with the median for the industry. Moreover, Doug Valenti also holds US$20m worth of QuinStreet stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	US$572k	US$541k	12%
Other	US$4.2m	US$3.8m	88%
Total Compensation	US$4.8m	US$4.3m	100%

Speaking on an industry level, nearly 20% of total compensation represents salary, while the remainder of 80% is other remuneration. It's interesting to note that QuinStreet allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

QuinStreet, Inc.'s Growth

Over the last three years, QuinStreet, Inc. has shrunk its earnings per share by 121% per year. The trailing twelve months of revenue was pretty much the same as the prior period.

The decline in EPS is a bit concerning. And the flat revenue is seriously uninspiring. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has QuinStreet, Inc. Been A Good Investment?

With a total shareholder return of -39% over three years, QuinStreet, Inc. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for QuinStreet that investors should think about before committing capital to this stock.

Important note: QuinStreet is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.