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Does Quest Resource Holding Corporation’s (NASDAQ:QRHC) CEO Pay Reflect Performance?

In 2016 S. Hatch was appointed CEO of Quest Resource Holding Corporation (NASDAQ:QRHC). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. 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.

View our latest analysis for Quest Resource Holding

How Does S. Hatch’s Compensation Compare With Similar Sized Companies?

According to our data, Quest Resource Holding Corporation has a market capitalization of US$21m, and pays its CEO total annual compensation worth US$1.0m. (This is based on the year to 2016). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$279k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$295k.

Thus we can conclude that S. Hatch receives more in total compensation than the median of a group of companies in the same market, and of similar size to Quest Resource Holding Corporation. However, this doesn’t necessarily mean the pay is too high. 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 Quest Resource Holding has changed over time.

NasdaqCM:QRHC CEO Compensation November 30th 18

Is Quest Resource Holding Corporation Growing?

Over the last three years Quest Resource Holding Corporation has grown its earnings per share (EPS) by an average of 22% per year. It saw its revenue drop -37% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end.

You might want to check this free visual report on analyst forecasts for future earnings.

Has Quest Resource Holding Corporation Been A Good Investment?

Since shareholders would have lost about 78% over three years, some Quest Resource Holding Corporation shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary…

We examined the amount Quest Resource Holding Corporation pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

However we must not forget that the EPS growth has been very strong over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. 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 Quest Resource Holding.

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.