CyberOptics Corporation's (NASDAQ:CYBE) CEO Will Probably Have Their Compensation Approved By Shareholders

It would be hard to discount the role that CEO Subodh Kulkarni has played in delivering the impressive results at CyberOptics Corporation (NASDAQ:CYBE) recently. Coming up to the next AGM on 13 May 2021, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

See our latest analysis for CyberOptics

How Does Total Compensation For Subodh Kulkarni Compare With Other Companies In The Industry?

At the time of writing, our data shows that CyberOptics Corporation has a market capitalization of US$220m, and reported total annual CEO compensation of US$1.3m for the year to December 2020. We note that's an increase of 68% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$412k.

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$1.1m. From this we gather that Subodh Kulkarni is paid around the median for CEOs in the industry. Furthermore, Subodh Kulkarni directly owns US$3.2m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2020	2019	Proportion (2020)
Salary	US$412k	US$400k	32%
Other	US$874k	US$364k	68%
Total Compensation	US$1.3m	US$764k	100%

On an industry level, roughly 13% of total compensation represents salary and 87% is other remuneration. According to our research, CyberOptics has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

CyberOptics Corporation's Growth

CyberOptics Corporation has seen its earnings per share (EPS) increase by 65% a year over the past three years. In the last year, its revenue is up 18%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 CyberOptics Corporation Been A Good Investment?

Boasting a total shareholder return of 75% over three years, CyberOptics Corporation has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

So you may want to check if insiders are buying CyberOptics shares with their own money (free access).

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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