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Jonathan McGuire has been the CEO of Second Sight Medical Products, Inc. (NASDAQ:EYES) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Jonathan McGuire's Compensation Compare With Similar Sized Companies?
According to our data, Second Sight Medical Products, Inc. has a market capitalization of US$96m, and pays its CEO total annual compensation worth US$1.2m. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at US$414k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$462k.
Thus we can conclude that Jonathan McGuire receives more in total compensation than the median of a group of companies in the same market, and of similar size to Second Sight Medical Products, Inc.. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Second Sight Medical Products, below.
Is Second Sight Medical Products, Inc. Growing?
Second Sight Medical Products, Inc. has increased its earnings per share (EPS) by an average of 14% a year, over the last three years (using a line of best fit). Its revenue is down -11% over last year.
This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. Shareholders might be interested in this free visualization of analyst forecasts.
Has Second Sight Medical Products, Inc. Been A Good Investment?
With a three year total loss of 81%, Second Sight Medical Products, Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared total CEO remuneration at Second Sight Medical Products, Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. So you may want to check if insiders are buying Second Sight Medical Products shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.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.