In 2014 Phil Hartstein was appointed CEO of Finjan Holdings, Inc. (NASDAQ:FNJN). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Phil Hartstein’s Compensation Compare With Similar Sized Companies?
According to our data, Finjan Holdings, Inc. has a market capitalization of US$57m, and pays its CEO total annual compensation worth US$2.1m. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at US$390k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$490k.
It would therefore appear that Finjan Holdings, Inc. pays Phil Hartstein more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Finjan Holdings, below.
Is Finjan Holdings, Inc. Growing?
Finjan Holdings, Inc. has increased its earnings per share (EPS) by an average of 24% a year, over the last three years (using a line of best fit). Its revenue is down -93% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important.
Has Finjan Holdings, Inc. Been A Good Investment?
Finjan Holdings, Inc. has served shareholders reasonably well, with a total return of 25% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
We examined the amount Finjan Holdings, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. We also think investors are doing ok, over the same time period. While it may be worth researching further, we don’t see a problem with the CEO pay, given the good EPS growth. Shareholders may want to check for free if Finjan Holdings insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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