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In 2016 Kristine Glancy was appointed CEO of Insignia Systems, Inc. (NASDAQ:ISIG). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Kristine Glancy's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Insignia Systems, Inc. has a market cap of US$9.5m, and reported total annual CEO compensation of US$815k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$306k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$522k.
As you can see, Kristine Glancy is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Insignia Systems, Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Insignia Systems has changed over time.
Is Insignia Systems, Inc. Growing?
Over the last three years Insignia Systems, Inc. has grown its earnings per share (EPS) by an average of 36% per year (using a line of best fit). In the last year, its revenue is down 28%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Insignia Systems, Inc. Been A Good Investment?
With a three year total loss of 49%, Insignia Systems, Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
We examined the amount Insignia Systems, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, 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. Whatever your view on compensation, you might want to check if insiders are buying or selling Insignia Systems shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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