In 2015 Scott Bibaud was appointed CEO of Atomera Incorporated (NASDAQ:ATOM). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Scott Bibaud's Compensation Compare With Similar Sized Companies?
Our data indicates that Atomera Incorporated is worth US$62m, and total annual CEO compensation is US$1.3m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$342k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$498k.
It would therefore appear that Atomera Incorporated pays Scott Bibaud 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. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Atomera has changed over time.
Is Atomera Incorporated Growing?
Atomera Incorporated has increased its earnings per share (EPS) by an average of 71% a year, over the last three years (using a line of best fit). It achieved revenue growth of 41% over the last year.
This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. You might want to check this free visual report on analyst forecasts for future earnings.
Has Atomera Incorporated Been A Good Investment?
Since shareholders would have lost about 56% over three years, some Atomera Incorporated shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We compared total CEO remuneration at Atomera Incorporated with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark 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. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. Shareholders may want to check for free if Atomera insiders are buying or selling shares.
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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