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Bill Ulland has been the CEO of IKONICS Corporation (NASDAQ:IKNX) since 2000. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Bill Ulland’s Compensation Compare With Similar Sized Companies?
According to our data, IKONICS Corporation has a market capitalization of US$16m, and pays its CEO total annual compensation worth US$302k. (This is based on the year to 2017). It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$288k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$298k.
That means Bill Ulland 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 a visual representation of the CEO compensation at IKONICS, below.
Is IKONICS Corporation Growing?
IKONICS Corporation has reduced its earnings per share by an average of 8.7% a year, over the last three years (measured with a line of best fit). Its revenue is up 7.3% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. 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 shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has IKONICS Corporation Been A Good Investment?
With a three year total loss of 31%, IKONICS Corporation would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
Bill Ulland is paid around what is normal the leaders of comparable size companies.
After looking at EPS and total shareholder returns, it’s certainly hard to argue the company has performed well, since both metrics are down. 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 IKONICS.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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.