Vic Dellovo became the CEO of CSP Inc (NASDAQ:CSPI) in 2012. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. 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 Vic Dellovo’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that CSP Inc has a market cap of US$48m, and is paying total annual CEO compensation of US$1.2m. That’s less than last year. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO compensation to be US$293k.
Thus we can conclude that Vic Dellovo receives more in total compensation than the median of a group of companies in the same market, and of similar size to CSP Inc. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at CSP has changed over time.
Is CSP Inc Growing?
Over the last three years CSP Inc has grown its earnings per share (EPS) by an average of 17% per year. It achieved revenue growth of 22% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.
Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has CSP Inc Been A Good Investment?
Boasting a total shareholder return of 135% over three years, CSP Inc has done well by shareholders. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
We examined the amount CSP Inc pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling CSP Inc (free visualization of insider trades).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
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 email@example.com.