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Is Qualstar Corporation's (NASDAQ:QBAK) CEO Pay Justified?

Simply Wall St

In 2013 Steven Bronson was appointed CEO of Qualstar Corporation (NASDAQ:QBAK). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. 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.

See our latest analysis for Qualstar

How Does Steven Bronson's Compensation Compare With Similar Sized Companies?

According to our data, Qualstar Corporation has a market capitalization of US$8.7m, and pays its CEO total annual compensation worth US$342k. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at US$200k. 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$479k.

So Steven Bronson is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at Qualstar, below.

NasdaqCM:QBAK CEO Compensation, August 20th 2019

Is Qualstar Corporation Growing?

Qualstar Corporation has increased its earnings per share (EPS) by an average of 104% a year, over the last three years (using a line of best fit). Its revenue is up 2.1% over last year.

This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Qualstar Corporation Been A Good Investment?

Qualstar Corporation has served shareholders reasonably well, with a total return of 12% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Steven Bronson is paid around the same as most CEOs of similar size companies.

Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. So upon reflection one could argue that the CEO pay is quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Qualstar (free visualization of insider trades).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.