Wendell Blonigan has been the CEO of Intevac, Inc. (NASDAQ:IVAC) since 2013. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Wendell Blonigan's Compensation Compare With Similar Sized Companies?
According to our data, Intevac, Inc. has a market capitalization of US$125m, and paid its CEO total annual compensation worth US$987k over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$512k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$487k.
It would therefore appear that Intevac, Inc. pays Wendell Blonigan 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. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Intevac has changed from year to year.
Is Intevac, Inc. Growing?
On average over the last three years, Intevac, Inc. has grown earnings per share (EPS) by 77% each year (using a line of best fit). In the last year, its revenue is up 2.7%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.
Has Intevac, Inc. Been A Good Investment?
Since shareholders would have lost about 10% over three years, some Intevac, Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
We examined the amount Intevac, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. However, the returns to investors are far less impressive, over the same period. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. Whatever your view on compensation, you might want to check if insiders are buying or selling Intevac shares (free trial).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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