How Should Investors React To Telenav Inc’s (NASDAQ:TNAV) CEO Pay?

H. Jin has been the CEO of Telenav Inc (NASDAQ:TNAV) since 2001. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Telenav

How Does H. Jin’s Compensation Compare With Similar Sized Companies?

Our data indicates that Telenav Inc is worth US$205m, and total annual CEO compensation is US$821k. That’s less than last year. 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$907k.

So H. Jin receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.

The graphic below shows how CEO compensation at Telenav has changed from year to year.

NasdaqGS:TNAV CEO Compensation October 22nd 18
NasdaqGS:TNAV CEO Compensation October 22nd 18

Is Telenav Inc Growing?

Over the last three years Telenav Inc has shrunk its earnings per share by an average of 37% per year. In the last year, its revenue is down -37%.

Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.

You might want to check this free visual report on analyst forecasts for future earnings.

Has Telenav Inc Been A Good Investment?

With a three year total loss of 36%, Telenav Inc would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary…

H. Jin is paid around the same as most CEOs of similar size companies.

Returns have been disappointing and the company is not growing its earnings per share. Few would argue that it’s wise for the company to pay any more, before returns improve. Whatever your view on compensation, you might want to check if insiders are buying or selling Telenav Inc shares (free trial).

Or you might prefer this data-rich interactive visualization of historic revenue and earnings.

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 editorial-team@simplywallst.com.