Reece Kurtenbach became the CEO of Daktronics, Inc. (NASDAQ:DAKT) in 2013. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Reece Kurtenbach's Compensation Compare With Similar Sized Companies?
According to our data, Daktronics, Inc. has a market capitalization of US$272m, and paid its CEO total annual compensation worth US$516k over the year to April 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$444k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$100m to US$400m. The median total CEO compensation was US$1.1m.
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.
The graphic below shows how CEO compensation at Daktronics has changed from year to year.
Is Daktronics, Inc. Growing?
On average over the last three years, Daktronics, Inc. has shrunk earnings per share by 62% each year (measured with a line of best fit). Revenue was pretty flat on last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the flat revenue is seriously uninspiring. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Daktronics, Inc. Been A Good Investment?
With a three year total loss of 38%, Daktronics, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
It appears that Daktronics, Inc. remunerates its CEO below most similar sized companies.
The compensation paid to Reece Kurtenbach is lower than is usual at similar sized companies, but the eps growth is lacking, just like the returns (over three years). We would not call the pay too generous, but nor would we claim the CEO is underpaid, given lacklustre business performance. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Daktronics.
If you want to buy a stock that is better than Daktronics, this free list of high return, low debt companies is a great place to look.
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