In 2013 Wendell Blonigan was appointed CEO of Intevac Inc (NASDAQ:IVAC). 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Wendell Blonigan’s Compensation Compare With Similar Sized Companies?
According to our data, Intevac Inc has a market capitalization of US$97m, and pays its CEO total annual compensation worth US$2m. Notably, that’s an increase of 58% over the year before. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$297k.
As you can see, Wendell Blonigan is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Intevac 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.
The graphic below shows how CEO compensation at Intevac has changed from year to year.
Is Intevac Inc Growing?
On average over the last three years, Intevac Inc has grown earnings per share (EPS) by 81% each year. Its revenue is down -15% over last year.
This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Intevac Inc Been A Good Investment?
With a three year total loss of 14%, Intevac Inc would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
We examined the amount Intevac Inc pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. So shareholders might not feel great about the fact that CEO pay increased on last year. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. Shareholders may want to check for free if Intevac 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.