Fred Kornberg has been the CEO of Comtech Telecommunications Corp. (NASDAQ:CMTL) since 2016. 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. This method should give us information to assess how appropriately the company pays the CEO.
How Does Fred Kornberg's Compensation Compare With Similar Sized Companies?
Our data indicates that Comtech Telecommunications Corp. is worth US$721m, and total annual CEO compensation is US$3.4m. (This is based on the year to July 2018). While we always look at total compensation first, we note that the salary component is less, at US$760k. We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO total compensation of that group was US$2.7m.
So Fred Kornberg 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 Comtech Telecommunications has changed from year to year.
Is Comtech Telecommunications Corp. Growing?
Over the last three years Comtech Telecommunications Corp. has grown its earnings per share (EPS) by an average of 82% per year (using a line of best fit). It achieved revenue growth of 20% over the last year.
This demonstrates that the company has been improving recently. A good result. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Shareholders might be interested in this free visualization of analyst forecasts.
Has Comtech Telecommunications Corp. Been A Good Investment?
Boasting a total shareholder return of 145% over three years, Comtech Telecommunications Corp. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Fred Kornberg is paid around what is normal the leaders of comparable size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Comtech Telecommunications.
Important note: Comtech Telecommunications 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.
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