Mike Dugan became the CEO of EchoStar Corporation (NASDAQ:SATS) in 2009. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
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How Does Mike Dugan’s Compensation Compare With Similar Sized Companies?
Our data indicates that EchoStar Corporation is worth US$3.9b, and total annual CEO compensation is US$2.0m. (This is based on the year to December 2018). That’s a notable increase of 9.1% on last year. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$1.0m. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO total compensation was US$5.3m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at EchoStar, below.
Is EchoStar Corporation Growing?
EchoStar Corporation saw earnings per share stay pretty flat over the last three years, albeit with a slight positive trend. It achieved revenue growth of 8.5% over the last year.
I would argue that the improvement in revenue isn’t particularly impressive, but it is good to see modest EPS growth. Considering these factors I’d say performance has been pretty decent, though not amazing. Shareholders might be interested in this free visualization of analyst forecasts.
Has EchoStar Corporation Been A Good Investment?
With a total shareholder return of 1.2% over three years, EchoStar Corporation has done okay by shareholders. But they would probably prefer not to see CEO compensation far in excess of the median.
EchoStar Corporation is currently paying its CEO below what is normal for companies of its size.
It’s well worth noting that while Mike Dugan is paid less than most company leaders (at companies of similar size), share price performance has been somewhat uninspiring. However I do not find the CEO compensation to be concerning. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at EchoStar.
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.
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