Frank Khulusi became the CEO of PCM, Inc. (NASDAQ:PCMI) in 1987. 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. 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 Frank Khulusi’s Compensation Compare With Similar Sized Companies?
Our data indicates that PCM, Inc. is worth US$209m, and total annual CEO compensation is US$2.3m. (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$833k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO compensation was US$993k.
As you can see, Frank Khulusi is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean PCM, Inc. is paying too much. 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 PCM has changed over time.
Is PCM, Inc. Growing?
On average over the last three years, PCM, Inc. has grown earnings per share (EPS) by 72% each year. It saw its revenue drop -1.7% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end.
You might want to check this free visual report on analyst forecasts for future earnings.
Has PCM, Inc. Been A Good Investment?
Most shareholders would probably be pleased with PCM, Inc. for providing a total return of 73% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared total CEO remuneration at PCM, Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. 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 PCM.
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
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.