Does BroadVision, Inc.'s (NASDAQ:BVSN) CEO Pay Compare Well With Peers?
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Pehong Chen has been the CEO of BroadVision, Inc. (NASDAQ:BVSN) since 1993. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for BroadVision
How Does Pehong Chen's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that BroadVision, Inc. has a market cap of US$7.1m, and is paying total annual CEO compensation of US$352k. (This is based on the year to December 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$350k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$470k.
That means Pehong Chen receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at BroadVision has changed from year to year.
Is BroadVision, Inc. Growing?
BroadVision, Inc. has increased its earnings per share (EPS) by an average of 16% a year, over the last three years (using a line of best fit). Its revenue is down -27% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important. 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 BroadVision, Inc. Been A Good Investment?
With a three year total loss of 78%, BroadVision, Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Pehong Chen is paid around the same as most CEOs of similar size companies.
We'd say the company can boast of its EPS growth, but it's disappointing to see negative shareholder returns over three years. We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. Shareholders may want to check for free if BroadVision insiders are buying or selling shares.
If you want to buy a stock that is better than BroadVision, this free list of high return, low debt companies is a great place to look.
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.
