A Quick Analysis On ShotSpotter's (NASDAQ:SSTI) CEO Compensation
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This article will reflect on the compensation paid to Ralph Clark who has served as CEO of ShotSpotter, Inc. (NASDAQ:SSTI) since 2010. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for ShotSpotter.
View our latest analysis for ShotSpotter
How Does Total Compensation For Ralph Clark Compare With Other Companies In The Industry?
According to our data, ShotSpotter, Inc. has a market capitalization of US$270m, and paid its CEO total annual compensation worth US$1.1m over the year to December 2019. We note that's an increase of 14% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$300k.
On comparing similar companies from the same industry with market caps ranging from US$100m to US$400m, we found that the median CEO total compensation was US$1.0m. From this we gather that Ralph Clark is paid around the median for CEOs in the industry. What's more, Ralph Clark holds US$12m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$300k | US$300k | 27% |
Other | US$810k | US$670k | 73% |
Total Compensation | US$1.1m | US$970k | 100% |
Speaking on an industry level, nearly 12% of total compensation represents salary, while the remainder of 88% is other remuneration. ShotSpotter is paying a higher share of its remuneration through a salary in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at ShotSpotter, Inc.'s Growth Numbers
ShotSpotter, Inc.'s earnings per share (EPS) grew 117% per year over the last three years. It achieved revenue growth of 11% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has ShotSpotter, Inc. Been A Good Investment?
We think that the total shareholder return of 75%, over three years, would leave most ShotSpotter, Inc. 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.
In Summary...
As we noted earlier, ShotSpotter pays its CEO in line with similar-sized companies belonging to the same industry. Few would be critical of the leadership, since returns have been juicy and earnings are moving in the right direction. Indeed, many might consider that Ralph is compensated rather modestly, given the solid company performance! Stockholders might even be okay with a bump in pay, seeing as how investor returns have been so strong.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for ShotSpotter that you should be aware of before investing.
Switching gears from ShotSpotter, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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