Juergen Stark has been the CEO of Turtle Beach Corporation (NASDAQ:HEAR) since 2014, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
Comparing Turtle Beach Corporation's CEO Compensation With the industry
At the time of writing, our data shows that Turtle Beach Corporation has a market capitalization of US$275m, and reported total annual CEO compensation of US$2.2m for the year to December 2019. Notably, that's a decrease of 55% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$550k.
On examining similar-sized companies in the industry with market capitalizations between US$100m and US$400m, we discovered that the median CEO total compensation of that group was US$2.1m. So it looks like Turtle Beach compensates Juergen Stark in line with the median for the industry. Furthermore, Juergen Stark directly owns US$3.0m worth of shares in the company, implying that they are deeply invested in the company's success.
Speaking on an industry level, nearly 26% of total compensation represents salary, while the remainder of 74% is other remuneration. Turtle Beach is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Turtle Beach Corporation's Growth
Over the past three years, Turtle Beach Corporation has seen its earnings per share (EPS) grow by 66% per year. Its revenue is down 3.1% over the previous year.
Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Turtle Beach Corporation Been A Good Investment?
Most shareholders would probably be pleased with Turtle Beach Corporation for providing a total return of 697% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
As we touched on above, Turtle Beach Corporation is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Investors would surely be happy to see that returns have been great, and that EPS is up. So one could argue that CEO compensation is quite modest, if you consider company performance! In fact, shareholders might even think the CEO deserves a raise as a reward due to the fantastic returns generated.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Turtle Beach that you should be aware of before investing.
Switching gears from Turtle Beach, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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