Himesh Bhise became the CEO of Synacor, Inc. (NASDAQ:SYNC) in 2014. 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. This method should give us information to assess how appropriately the company pays the CEO.
How Does Himesh Bhise's Compensation Compare With Similar Sized Companies?
According to our data, Synacor, Inc. has a market capitalization of US$61m, and pays its CEO total annual compensation worth US$639k. (This is based on the year to December 2018). That's less than last year. We think total compensation is more important but we note that the CEO salary is lower, at US$440k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$431k.
As you can see, Himesh Bhise is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Synacor, 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 a visual representation of the CEO compensation at Synacor, below.
Is Synacor, Inc. Growing?
On average over the last three years, Synacor, Inc. has grown earnings per share (EPS) by 2.4% each year (using a line of best fit). Its revenue is up 2.8% over last year.
I would argue that the improvement in revenue isn't particularly impressive, but it is good to see modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. It could be important to check this free visual depiction of what analysts expect for the future.
Has Synacor, Inc. Been A Good Investment?
Synacor, Inc. has generated a total shareholder return of 7.6% over three years, so most shareholders wouldn't be too disappointed. But they would probably prefer not to see CEO compensation far in excess of the median.
We compared the total CEO remuneration paid by Synacor, Inc., and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
We generally prefer to see stronger EPS growth, and we're not particularly impressed with the total shareholder return, over the last three years. So it's certainly hard to argue that the CEO is modestly paid, although we don't see the remuneration as an issue. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Synacor.
If you want to buy a stock that is better than Synacor, this free list of high return, low debt companies is a great place to look.
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