Andrew Sculley has been the CEO of eMagin Corporation (NYSEMKT:EMAN) since 2008, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether eMagin pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
How Does Total Compensation For Andrew Sculley Compare With Other Companies In The Industry?
According to our data, eMagin Corporation has a market capitalization of US$84m, and paid its CEO total annual compensation worth US$418k over the year to December 2019. That's a slight decrease of 5.0% on the prior year. It is worth noting that the CEO compensation consists entirely of the salary, worth US$418k.
On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$470k. From this we gather that Andrew Sculley is paid around the median for CEOs in the industry. Moreover, Andrew Sculley also holds US$384k worth of eMagin stock directly under their own name.
Talking in terms of the industry, salary represented approximately 15% of total compensation out of all the companies we analyzed, while other remuneration made up 85% of the pie. On a company level, eMagin prefers to reward its CEO through a salary, opting not to pay Andrew Sculley through non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
eMagin Corporation's Growth
Over the past three years, eMagin Corporation has seen its earnings per share (EPS) grow by 37% per year. It achieved revenue growth of 17% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has eMagin Corporation Been A Good Investment?
Since shareholders would have lost about 31% over three years, some eMagin Corporation investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.
eMagin rewards its CEO solely through a salary, ignoring non-salary benefits completely. As previously discussed, Andrew is compensated close to the median for companies of its size, and which belong to the same industry. At the same time, the company has logged negative shareholder returns over the last three years. But EPS growth is moving in a favorable direction, certainly a positive sign. Overall, we wouldn't say Andrew is paid an unjustified compensation, but shareholders might not favor a raise before shareholder returns show a positive trend.
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 eMagin that you should be aware of before investing.
Important note: eMagin 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.
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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.
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