Arthur Sams became the CEO of Polar Power, Inc. (NASDAQ:POLA) in 1991. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Arthur Sams's Compensation Compare With Similar Sized Companies?
According to our data, Polar Power, Inc. has a market capitalization of US$24m, and paid its CEO total annual compensation worth US$801k over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$275k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$529k.
Thus we can conclude that Arthur Sams receives more in total compensation than the median of a group of companies in the same market, and of similar size to Polar Power, Inc.. However, this doesn't necessarily mean the pay 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 Polar Power, below.
Is Polar Power, Inc. Growing?
Polar Power, Inc. has reduced its earnings per share by an average of 95% a year, over the last three years (measured with a line of best fit). Its revenue is up 63% over last year.
Investors should note that, over three years, earnings per share are down. On the other hand, the strong revenue growth suggests the business is growing. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. It could be important to check this free visual depiction of what analysts expect for the future.
Has Polar Power, Inc. Been A Good Investment?
Given the total loss of 73% over three years, many shareholders in Polar Power, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
We compared the total CEO remuneration paid by Polar Power, Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. Shareholders may want to check for free if Polar Power insiders are buying or selling shares.
If you want to buy a stock that is better than Polar Power, this free list of high return, low debt companies is a great place to look.
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