Juergen Stark has been the CEO of Turtle Beach Corporation (NASDAQ:HEAR) since 2014. First, this article will compare CEO compensation with compensation at similar sized companies. 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 process should give us an idea about how appropriately the CEO is paid.
How Does Juergen Stark's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Turtle Beach Corporation has a market cap of US$127m, and reported total annual CEO compensation of US$4.9m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$550k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. 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$502k.
It would therefore appear that Turtle Beach Corporation pays Juergen Stark 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. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Turtle Beach, below.
Is Turtle Beach Corporation Growing?
On average over the last three years, Turtle Beach Corporation has grown earnings per share (EPS) by 126% each year (using a line of best fit). In the last year, its revenue is down 4.5%.
This shows that the company has improved itself over the last few years. Good news for shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Turtle Beach Corporation Been A Good Investment?
I think that the total shareholder return of 50%, over three years, would leave most Turtle Beach Corporation shareholders smiling. 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 Turtle Beach Corporation pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. In addition, shareholders have done well over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. Shareholders may want to check for free if Turtle Beach insiders are buying or selling shares.
If you want to buy a stock that is better than Turtle Beach, this free list of high return, low debt companies is a great place to look.
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