Jeff Quiram became the CEO of Superconductor Technologies Inc. (NASDAQ:SCON) in 2005. 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 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 Jeff Quiram's Compensation Compare With Similar Sized Companies?
Our data indicates that Superconductor Technologies Inc. is worth US$5.2m, and total annual CEO compensation is US$413k. (This number is for the twelve months until December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$324k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$473k.
That means Jeff Quiram receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Superconductor Technologies has changed over time.
Is Superconductor Technologies Inc. Growing?
Over the last three years Superconductor Technologies Inc. has grown its earnings per share (EPS) by an average of 86% per year (using a line of best fit). In the last year, its revenue is up 90%.
This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Superconductor Technologies Inc. Been A Good Investment?
Since shareholders would have lost about 97% over three years, some Superconductor Technologies Inc. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
Jeff Quiram is paid around what is normal the leaders of comparable size companies.
We think that the EPS growth is very pleasing, but we cannot say the same about the lacklustre shareholder returns (over the last three years). Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. Whatever your view on compensation, you might want to check if insiders are buying or selling Superconductor Technologies shares (free trial).
If you want to buy a stock that is better than Superconductor Technologies, this free list of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.