How Much Does eMagin's (NYSEMKT:EMAN) CEO Make?
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Andrew Sculley became the CEO of eMagin Corporation (NYSEMKT:EMAN) in 2008, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
See our latest analysis for eMagin
Comparing eMagin Corporation's CEO Compensation With the industry
According to our data, eMagin Corporation has a market capitalization of US$49m, and paid its CEO total annual compensation worth US$418k over the year to December 2019. That's a slight decrease of 5.0% on the prior year. It is worth noting that the CEO compensation consists entirely of the salary, worth US$418k.
On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$486k. This suggests that eMagin remunerates its CEO largely in line with the industry average. What's more, Andrew Sculley holds US$245k worth of shares in the company in their own name.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$418k | US$440k | 100% |
Other | - | - | - |
Total Compensation | US$418k | US$440k | 100% |
On an industry level, roughly 14% of total compensation represents salary and 86% is other remuneration. Speaking on a company level, eMagin prefers to tread along a traditional path, disbursing all compensation through a salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
eMagin Corporation's Growth
eMagin Corporation has seen its earnings per share (EPS) increase by 39% a year over the past three years. It achieved revenue growth of 7.4% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 eMagin Corporation Been A Good Investment?
Given the total shareholder loss of 67% over three years, many shareholders in eMagin Corporation are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
eMagin rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we noted earlier, eMagin pays its CEO in line with similar-sized companies belonging to the same industry. At the same time, the company has logged negative shareholder returns over the last three years. However, earnings growth is positive over the same time frame. Overall, we wouldn't say Andrew is paid an unjustified compensation, but shareholders might not favor a raise before shareholder returns show a positive trend.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 5 warning signs (and 1 which is concerning) in eMagin we think you should know about.
Important note: eMagin is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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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