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Is Interlink Electronics Inc (NASDAQ:LINK) Overpaying Its CEO?

Steven Bronson has been the CEO of Interlink Electronics Inc (NASDAQ:LINK) since 2010. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Interlink Electronics

How Does Steven Bronson’s Compensation Compare With Similar Sized Companies?

According to our data, Interlink Electronics Inc has a market capitalization of US$23m, and pays its CEO total annual compensation worth US$301k. That’s actually a decrease on the year before. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO compensation to be US$292k.

So Steven Bronson is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at Interlink Electronics, below.

NasdaqCM:LINK CEO Compensation November 6th 18

Is Interlink Electronics Inc Growing?

On average over the last three years, Interlink Electronics Inc has shrunk earnings per share by 14% each year. In the last year, its revenue is down -16%.

Sadly for shareholders, earnings per share are actually down, over three years. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.

We don’t have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Interlink Electronics Inc Been A Good Investment?

Given the total loss of 47% over three years, many shareholders in Interlink Electronics Inc are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

Steven Bronson is paid around the same as most CEOs of similar size companies.

Returns have been disappointing and the company is not growing its earnings per share. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Interlink Electronics Inc.

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 editorial-team@simplywallst.com.