Shareholders May Not Be So Generous With QuickLogic Corporation's (NASDAQ:QUIK) CEO Compensation And Here's Why

Key Insights

• QuickLogic's Annual General Meeting to take place on 8th of May
• Salary of US$424.0k is part of CEO Brian Faith's total remuneration
• The total compensation is 78% higher than the average for the industry
• Over the past three years, QuickLogic's EPS grew by 60% and over the past three years, the total shareholder return was 5.1%

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Performance at QuickLogic Corporation (NASDAQ:QUIK) has been reasonably good and CEO Brian Faith has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 8th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for QuickLogic

How Does Total Compensation For Brian Faith Compare With Other Companies In The Industry?

According to our data, QuickLogic Corporation has a market capitalization of US$90m, and paid its CEO total annual compensation worth US$1.5m over the year to December 2024. This means that the compensation hasn't changed much from last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$424k.

On comparing similar-sized companies in the American Semiconductor industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$826k. Hence, we can conclude that Brian Faith is remunerated higher than the industry median. Moreover, Brian Faith also holds US$1.1m worth of QuickLogic stock directly under their own name.

Component	2024	2023	Proportion (2024)
Salary	US$424k	US$354k	29%
Other	US$1.0m	US$1.1m	71%
Total Compensation	US$1.5m	US$1.4m	100%

On an industry level, around 11% of total compensation represents salary and 89% is other remuneration. It's interesting to note that QuickLogic pays out a greater portion of remuneration through salary, compared to the industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at QuickLogic Corporation's Growth Numbers

Over the past three years, QuickLogic Corporation has seen its earnings per share (EPS) grow by 60% per year. Its revenue is down 4.8% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 QuickLogic Corporation Been A Good Investment?

QuickLogic Corporation has not done too badly by shareholders, with a total return of 5.1%, over three years. It would be nice to see that metric improve in the future. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for QuickLogic that investors should look into moving forward.

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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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.