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In 2001 H. Jin was appointed CEO of Telenav, Inc. (NASDAQ:TNAV). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does H. Jin’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Telenav, Inc. has a market cap of US$207m, and is paying total annual CEO compensation of US$821k. (This number is for the twelve months until 2018). While we always look at total compensation first, we note that the salary component is less, at US$380k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO compensation was US$951k.
That means H. Jin receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Telenav, below.
Is Telenav, Inc. Growing?
On average over the last three years, Telenav, Inc. has shrunk earnings per share by 37% each year (measured with a line of best fit). Its revenue is down -45% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has Telenav, Inc. Been A Good Investment?
Since shareholders would have lost about 22% over three years, some Telenav, Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
Remuneration for H. Jin is close enough to the median pay for a CEO of a similar sized company .
After looking at EPS and total shareholder returns, it’s certainly hard to argue the company has performed well, since both metrics are down. Suffice it to say, we don’t think the CEO is underpaid! Shareholders may want to check for free if Telenav insiders are buying or selling shares.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity 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 firstname.lastname@example.org.