Most Shareholders Will Probably Agree With Rubicon Technology, Inc.'s (NASDAQ:RBCN) CEO Compensation

By
Simply Wall St
Published
June 18, 2021
NasdaqCM:RBCN

CEO Timothy Brog has done a decent job of delivering relatively good performance at Rubicon Technology, Inc. (NASDAQ:RBCN) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 24 June 2021. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

Check out our latest analysis for Rubicon Technology

How Does Total Compensation For Timothy Brog Compare With Other Companies In The Industry?

At the time of writing, our data shows that Rubicon Technology, Inc. has a market capitalization of US$24m, and reported total annual CEO compensation of US$527k for the year to December 2020. We note that's a decrease of 34% compared to last year. Notably, the salary which is US$350.0k, represents most of the total compensation being paid.

For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$465k. From this we gather that Timothy Brog is paid around the median for CEOs in the industry. Furthermore, Timothy Brog directly owns US$1.0m worth of shares in the company.

Component20202019Proportion (2020)
Salary US$350k US$350k 66%
Other US$177k US$445k 34%
Total CompensationUS$527k US$795k100%

Speaking on an industry level, nearly 14% of total compensation represents salary, while the remainder of 86% is other remuneration. According to our research, Rubicon Technology has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation
NasdaqCM:RBCN CEO Compensation June 19th 2021

Rubicon Technology, Inc.'s Growth

Rubicon Technology, Inc. has seen its earnings per share (EPS) increase by 88% a year over the past three years. It achieved revenue growth of 7.2% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Rubicon Technology, Inc. Been A Good Investment?

With a total shareholder return of 27% over three years, Rubicon Technology, Inc. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 3 warning signs for Rubicon Technology that you should be aware of before investing.

Important note: Rubicon Technology 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.

Promoted
If you decide to trade Rubicon Technology, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account.


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 a financial technology startup focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of equity analysts with a public, market-beating track record.