We Discuss Whether Kopin Corporation's (NASDAQ:KOPN) CEO Is Due For A Pay Rise

Simply Wall St
May 19, 2021
Source: Shutterstock

The impressive results at Kopin Corporation (NASDAQ:KOPN) recently will be great news for shareholders. This would be kept in mind at the upcoming AGM on 26 May 2021 which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

See our latest analysis for Kopin

How Does Total Compensation For John Fan Compare With Other Companies In The Industry?

According to our data, Kopin Corporation has a market capitalization of US$597m, and paid its CEO total annual compensation worth US$569k over the year to December 2020. That's a slight decrease of 6.2% on the prior year. Notably, the salary which is US$559.4k, represents most of the total compensation being paid.

On examining similar-sized companies in the industry with market capitalizations between US$200m and US$800m, we discovered that the median CEO total compensation of that group was US$1.4m. That is to say, John Fan is paid under the industry median. Moreover, John Fan also holds US$37m worth of Kopin stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component20202019Proportion (2020)
Salary US$559k US$559k 98%
Other US$9.2k US$47k 2%
Total CompensationUS$569k US$606k100%

Talking in terms of the industry, salary represented approximately 14% of total compensation out of all the companies we analyzed, while other remuneration made up 86% of the pie. Kopin pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

NasdaqCM:KOPN CEO Compensation May 20th 2021

Kopin Corporation's Growth

Over the past three years, Kopin Corporation has seen its earnings per share (EPS) grow by 37% per year. Its revenue is up 38% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Kopin Corporation Been A Good Investment?

Boasting a total shareholder return of 102% over three years, Kopin Corporation has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

John receives almost all of their compensation through a salary. Seeing that company performance has been quite good recently, some shareholders may feel that CEO compensation may not be the biggest focus in the upcoming AGM. Seeing that earnings growth and share price performance seems to be on the right path, the more pressing focus for shareholders at the AGM may be how the board and management plans to turn the company into a sustainably profitable one.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 4 warning signs for Kopin that investors should be aware of in a dynamic business environment.

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.

When trading Kopin or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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. 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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Simply Wall St character - Warren

Simply Wall St

Simply Wall St is focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of data scientists and multiple equity analysts with over two decades worth of financial markets experience between them.