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In 2009 Nathan Mazurek was appointed CEO of Pioneer Power Solutions, Inc. (NASDAQ:PPSI). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. 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 Nathan Mazurek’s Compensation Compare With Similar Sized Companies?
According to our data, Pioneer Power Solutions, Inc. has a market capitalization of US$48m, and pays its CEO total annual compensation worth US$770k. (This number is for the twelve months until 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$440k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$300k.
It would therefore appear that Pioneer Power Solutions, Inc. pays Nathan Mazurek 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.
You can see, below, how CEO compensation at Pioneer Power Solutions has changed over time.
Is Pioneer Power Solutions, Inc. Growing?
Over the last three years Pioneer Power Solutions, Inc. has grown its earnings per share (EPS) by an average of 31% per year (using a line of best fit). In the last year, its revenue is up 6.6%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.
Has Pioneer Power Solutions, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Pioneer Power Solutions, Inc. for providing a total return of 48% over three years. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.
We examined the amount Pioneer Power Solutions, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. On top of that, in the same period, returns to shareholders have been great. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Pioneer Power Solutions.
If you want to buy a stock that is better than Pioneer Power Solutions, this free list of high return, low debt companies is a great place to look.
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 email@example.com.