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In 2009 Mike Dugan was appointed CEO of EchoStar Corporation (NASDAQ:SATS). 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. 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.
How Does Mike Dugan’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that EchoStar Corporation has a market cap of US$3.9b, and is paying total annual CEO compensation of US$1.9m. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$937k. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO compensation was US$4.8m.
Most shareholders would consider it a positive that Mike Dugan takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it’s important we delve into the performance of the actual business.
You can see, below, how CEO compensation at EchoStar has changed over time.
Is EchoStar Corporation Growing?
On average over the last three years, EchoStar Corporation has grown earnings per share (EPS) by 40% each year (using a line of best fit). It achieved revenue growth of 11% over the last year.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has EchoStar Corporation Been A Good Investment?
EchoStar Corporation has served shareholders reasonably well, with a total return of 20% over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
It looks like EchoStar Corporation pays its CEO less than similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. While returns over the last few years haven’t been top notch, there is nothing to suggest to us that Mike Dugan is overcompensated.
It’s great to see a company that pays its CEO reasonably, even while growing. But it would be nice if insiders were also buying shares. Shareholders may want to check for free if EchoStar insiders are buying or selling shares.
If you want to buy a stock that is better than EchoStar, this free list of high return, low debt companies is a great place to look.
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 email@example.com.