In 2012 Rob Glaser was appointed CEO of RealNetworks Inc (NASDAQ:RNWK). 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 Rob Glaser’s Compensation Compare With Similar Sized Companies?
Our data indicates that RealNetworks Inc is worth US$88m, and total annual CEO compensation is US$2m. That’s less than last year. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$291k.
It would therefore appear that RealNetworks Inc pays Rob Glaser more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at RealNetworks has changed over time.
Is RealNetworks Inc Growing?
On average over the last three years, RealNetworks Inc has grown earnings per share (EPS) by 64% each year. In the last year, its revenue is up 13%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.
Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has RealNetworks Inc Been A Good Investment?
Given the total loss of 46% over three years, many shareholders in RealNetworks Inc are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared the total CEO remuneration paid by RealNetworks Inc, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. 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. Shareholders may want to check for free if RealNetworks Inc insiders are buying or selling shares.
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
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 firstname.lastname@example.org.