What Did Fuel Tech, Inc.’s (NASDAQ:FTEK) CEO Take Home Last Year?
Vince Arnone became the CEO of Fuel Tech, Inc. (NASDAQ:FTEK) 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 – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Fuel Tech
Want to help shape the future of investing tools and platforms? Take the survey and be part of one of the most advanced studies of stock market investors to date.
How Does Vince Arnone’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Fuel Tech, Inc. has a market cap of US$31m, and is paying total annual CEO compensation of US$539k. (This figure is for the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$425k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$303k.
Thus we can conclude that Vince Arnone receives more in total compensation than the median of a group of companies in the same market, and of similar size to Fuel Tech, Inc.. However, this doesn’t necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Fuel Tech has changed from year to year.
Is Fuel Tech, Inc. Growing?
Over the last three years Fuel Tech, Inc. has grown its earnings per share (EPS) by an average of 40% per year (using a line of best fit). Its revenue is up 31% over last year.
This demonstrates that the company has been improving recently. A good result. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Fuel Tech, Inc. Been A Good Investment?
With a three year total loss of 20%, Fuel Tech, Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
We compared total CEO remuneration at Fuel Tech, Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. On the other hand returns to investors over the same period have probably disappointed many. Considering the per share profit growth, but keeping in mind the weak returns, we’d need more time to form a view on CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Fuel Tech.
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
