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How Should Investors React To CyberOptics Corporation's (NASDAQ:CYBE) CEO Pay?

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Subodh Kulkarni became the CEO of CyberOptics Corporation (NASDAQ:CYBE) in 2014. 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. 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.

Check out our latest analysis for CyberOptics

How Does Subodh Kulkarni's Compensation Compare With Similar Sized Companies?

According to our data, CyberOptics Corporation has a market capitalization of US$170m, and paid its CEO total annual compensation worth US$1.0m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$375k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$1.1m.

That means Subodh Kulkarni 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, below, how CEO compensation at CyberOptics has changed over time.

NasdaqGM:CYBE CEO Compensation, January 30th 2020
NasdaqGM:CYBE CEO Compensation, January 30th 2020

Is CyberOptics Corporation Growing?

Over the last three years CyberOptics Corporation has shrunk its earnings per share by an average of 56% per year (measured with a line of best fit). Its revenue is up 1.1% over last year.

Few shareholders would be pleased to read that earnings per share are lower 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. You might want to check this free visual report on analyst forecasts for future earnings.

Has CyberOptics Corporation Been A Good Investment?

Given the total loss of 37% over three years, many shareholders in CyberOptics Corporation are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Subodh Kulkarni is paid around what is normal the leaders of comparable size companies.

The company isn't growing EPS, and shareholder returns have been disappointing. Suffice it to say, we don't think the CEO is underpaid! So you may want to check if insiders are buying CyberOptics shares with their own money (free access).

Important note: CyberOptics 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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.

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. Thank you for reading.