Doug Valenti has been the CEO of QuinStreet, Inc. (NASDAQ:QNST) since 1999. 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 - 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.
How Does Doug Valenti's Compensation Compare With Similar Sized Companies?
According to our data, QuinStreet, Inc. has a market capitalization of US$667m, and paid its CEO total annual compensation worth US$3.4m over the year to June 2019. Notably, that's an increase of 112% over the year before. While we always look at total compensation first, we note that the salary component is less, at US$541k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO total compensation was US$2.7m.
That means Doug Valenti receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at QuinStreet has changed over time.
Is QuinStreet, Inc. Growing?
On average over the last three years, QuinStreet, Inc. has grown earnings per share (EPS) by 122% each year (using a line of best fit). Its revenue is up 13% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Shareholders might be interested in this free visualization of analyst forecasts.
Has QuinStreet, Inc. Been A Good Investment?
I think that the total shareholder return of 334%, over three years, would leave most QuinStreet, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for Doug Valenti is close enough to the median pay for a CEO of a similar sized company .
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling QuinStreet shares (free trial).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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