Todd DeBonis became the CEO of Pixelworks Inc (NASDAQ:PXLW) in 2016. 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 Todd DeBonis’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Pixelworks Inc has a market cap of US$144m, and is paying total annual CEO compensation of US$1m. That’s less than last year. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$297k.
As you can see, Todd DeBonis is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Pixelworks Inc is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Pixelworks, below.
Is Pixelworks Inc Growing?
On average over the last three years, Pixelworks Inc has grown earnings per share (EPS) by 45% each year. It saw its revenue drop -1.8% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. So this free report on the analyst consensus forecasts could help you make a master move on this stock.
Has Pixelworks Inc Been A Good Investment?
Pixelworks Inc has served shareholders reasonably well, with a total return of 21% over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
We compared the total CEO remuneration paid by Pixelworks Inc, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. We also note that, over the same time frame, shareholder returns haven’t been bad. While it may be worth researching further, we don’t see a problem with the CEO pay, given the good EPS growth. Sometimes, highly paid CEOs create a lot of value for shareholders. Nonetheless, it could be useful to double-check if insiders have sold shares recently.
But note: Pixelworks may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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 email@example.com.