David Bywater has been the CEO of Vivint Solar Inc (NYSE:VSLR) since 2016. 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. 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 David Bywater’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Vivint Solar Inc has a market cap of US$665m, and is paying total annual CEO compensation of US$1.3m. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$660k. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO compensation was US$2.2m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it’s important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Vivint Solar has changed over time.
Is Vivint Solar Inc Growing?
On average over the last three years, Vivint Solar Inc has grown earnings per share (EPS) by 96% each year. It achieved revenue growth of 21% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Vivint Solar Inc Been A Good Investment?
Given the total loss of 36% over three years, many shareholders in Vivint Solar Inc are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
Vivint Solar Inc is currently paying its CEO below what is normal for companies of its size. Since the business is growing, many would argue this suggests the pay is modest. Unfortunately, some shareholders may be disappointed with their returns, given the company’s performance over the last three years. We’re not critical of the remuneration David Bywater receives, but it would be good to see improved returns to shareholders before the remuneration grows too much.
When I see fairly low remuneration, combined with earnings per share growth, but without big share price gains, it makes me want to research the potential for future gains. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Vivint Solar (free visualization of insider trades).
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
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.