How Much Did BIO-key International, Inc.’s (NASDAQ:BKYI) CEO Pocket Last Year?
In 2003 Mike DePasquale was appointed CEO of BIO-key International, Inc. (NASDAQ:BKYI). First, this article will compare CEO compensation with compensation at similar sized companies. 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.
Check out our latest analysis for BIO-key International
How Does Mike DePasquale’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that BIO-key International, Inc. has a market cap of US$17m, and is paying total annual CEO compensation of US$843k. (This is based on the year to December 2017). While we always look at total compensation first, we note that the salary component is less, at US$250k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO compensation to be US$297k.
It would therefore appear that BIO-key International, Inc. pays Mike DePasquale more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at BIO-key International has changed from year to year.
Is BIO-key International, Inc. Growing?
BIO-key International, Inc. has reduced its earnings per share by an average of 15% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 8.9%.
Unfortunately, earnings per share have trended lower over the last three years. The modest increase in revenue in the last year isn’t enough to make me overlook the disappointing change in earnings per share. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has BIO-key International, Inc. Been A Good Investment?
Since shareholders would have lost about 35% over three years, some BIO-key International, Inc. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
We compared the total CEO remuneration paid by BIO-key International, Inc., and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
We think many shareholders would be underwhelmed with the business growth over the last three years.
Arguably worse, investors are without a positive return for the last three years. In our opinion the CEO might be paid too generously! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at BIO-key International.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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. Thank you for reading.
