Himesh Bhise has been the CEO of Synacor Inc (NASDAQ:SYNC) since 2014. First, this article will compare CEO compensation with compensation at similar sized companies. 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 Himesh Bhise’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Synacor Inc has a market cap of US$67m, and is paying total annual CEO compensation of US$982k. We note that’s an increase of 9.7% above last year. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO compensation to be US$293k.
As you can see, Himesh Bhise is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Synacor Inc is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Synacor, below.
Is Synacor Inc Growing?
On average over the last three years, Synacor Inc has grown earnings per share (EPS) by 2.6% each year. It achieved revenue growth of 17% over the last year.
This revenue growth could really point to a brighter future. And the modest growth in earnings per share isn’t bad, either. Although we’ll stop short of calling the stock a top performer, we think the company has potential.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Synacor Inc Been A Good Investment?
Synacor Inc has served shareholders reasonably well, with a total return of 22% over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
We compared the total CEO remuneration paid by Synacor Inc, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
We generally prefer to see stronger EPS growth, and we’re not particularly impressed with the total shareholder return, over the last three years. So it’s certainly hard to argue that the CEO is modestly paid, although we don’t see the remuneration as an issue. Whatever your view on compensation, you might want to check if insiders are buying or selling Synacor Inc shares (free trial).
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
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 firstname.lastname@example.org.