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Is Charles & Colvard, Ltd.'s (NASDAQ:CTHR) CEO Paid Enough Relative To Peers?

Simply Wall St

Suzanne Miglucci became the CEO of Charles & Colvard, Ltd. (NASDAQ:CTHR) in 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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.

View our latest analysis for Charles & Colvard

How Does Suzanne Miglucci's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Charles & Colvard, Ltd. has a market cap of US$24m, and is paying total annual CEO compensation of US$520k. (This number is for the twelve months until December 2017). While we always look at total compensation first, we note that the salary component is less, at US$335k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$427k.

That means Suzanne Miglucci 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, below, how CEO compensation at Charles & Colvard has changed over time.

NasdaqCM:CTHR CEO Compensation, April 15th 2019

Is Charles & Colvard, Ltd. Growing?

On average over the last three years, Charles & Colvard, Ltd. has grown earnings per share (EPS) by 44% each year (using a line of best fit). Its revenue is up 4.7% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Charles & Colvard, Ltd. Been A Good Investment?

Charles & Colvard, Ltd. has generated a total shareholder return of 0.9% over three years, so most shareholders wouldn't be too disappointed. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Remuneration for Suzanne Miglucci is close enough to the median pay for a CEO of a similar sized company .

Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. So upon reflection one could argue that the CEO pay is quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Charles & Colvard.

Important note: Charles & Colvard may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.