Jim Gaynor has been the CEO of LightPath Technologies Inc (NASDAQ:LPTH) since 2008. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Jim Gaynor’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that LightPath Technologies Inc has a market cap of US$48m, and is paying total annual CEO compensation of US$337k. That’s below the compensation, last year. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$292k.
So Jim Gaynor receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at LightPath Technologies, below.
Is LightPath Technologies Inc Growing?
Over the last three years LightPath Technologies Inc has grown its earnings per share (EPS) by an average of 39% per year. Its revenue is up 8.3% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has LightPath Technologies Inc Been A Good Investment?
LightPath Technologies Inc has generated a total shareholder return of 11% over three years, so most shareholders would be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
Remuneration for Jim Gaynor is close enough to the median pay for a CEO of a similar sized company .
We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. As a result of these considerations, I would suggest the CEO pay is reasonable.
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
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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 email@example.com.