Andrew Sculley has been the CEO of eMagin Corporation (NYSEMKT:EMAN) since 2008. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Andrew Sculley's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that eMagin Corporation has a market cap of US$17m, and reported total annual CEO compensation of US$440k for the year to December 2018. Notably, the salary of US$440k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$523k.
That means Andrew Sculley receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at eMagin, below.
Is eMagin Corporation Growing?
On average over the last three years, eMagin Corporation has grown earnings per share (EPS) by 22% each year (using a line of best fit). Its revenue is down 8.8% over last year.
This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. Shareholders might be interested in this free visualization of analyst forecasts.
Has eMagin Corporation Been A Good Investment?
With a three year total loss of 83%, eMagin Corporation would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
Andrew Sculley is paid around the same as most CEOs of similar size companies.
We think that the EPS growth is very pleasing, but we find the returns over the last three years to be lacking. Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. Shareholders may want to check for free if eMagin insiders are buying or selling shares.
Important note: eMagin may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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