Jeff Shealy became the CEO of Akoustis Technologies, Inc. (NASDAQ:AKTS) in 2015. First, this article will compare CEO compensation with compensation at similar sized companies. 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 Jeff Shealy's Compensation Compare With Similar Sized Companies?
According to our data, Akoustis Technologies, Inc. has a market capitalization of US$314m, and paid its CEO total annual compensation worth US$659k over the year to June 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$295k. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO total compensation was US$1.7m.
A first glance this seems like a real positive for shareholders, since Jeff Shealy is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Akoustis Technologies, below.
Is Akoustis Technologies, Inc. Growing?
Akoustis Technologies, Inc. has reduced its earnings per share by an average of 28% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 60% over the last year.
Investors should note that, over three years, earnings per share are down. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. Shareholders might be interested in this free visualization of analyst forecasts.
Has Akoustis Technologies, Inc. Been A Good Investment?
I think that the total shareholder return of 51%, over three years, would leave most Akoustis Technologies, Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Akoustis Technologies, Inc. is currently paying its CEO below what is normal for companies of its size.
Jeff Shealy receives relatively low remuneration compared to similar sized companies. And the returns to shareholders were great, over the last few years. We would like to see EPS growth, but in our view it seems the CEO is modestly remunerated. Whatever your view on compensation, you might want to check if insiders are buying or selling Akoustis Technologies shares (free trial).
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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