Rory Cutaia became the CEO of Verb Technology Company, Inc. (NASDAQ:VERB) in 2014, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Verb Technology Company pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
How Does Total Compensation For Rory Cutaia Compare With Other Companies In The Industry?
Our data indicates that Verb Technology Company, Inc. has a market capitalization of US$60m, and total annual CEO compensation was reported as US$2.9m for the year to December 2019. That's a notable increase of 81% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$476k.
For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$509k. This suggests that Rory Cutaia is paid more than the median for the industry. Moreover, Rory Cutaia also holds US$4.4m worth of Verb Technology Company stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Talking in terms of the industry, salary represented approximately 11% of total compensation out of all the companies we analyzed, while other remuneration made up 89% of the pie. According to our research, Verb Technology Company has allocated a higher percentage of pay to salary in comparison to the wider industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Verb Technology Company, Inc.'s Growth
Verb Technology Company, Inc.'s earnings per share (EPS) grew 15% per year over the last three years. It achieved revenue growth of 174% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Verb Technology Company, Inc. Been A Good Investment?
Since shareholders would have lost about 3.5% over three years, some Verb Technology Company, Inc. investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.
As previously discussed, Rory is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. But the company has impressed with its EPS growth, but shareholder returns — over the same period — have been disappointing. Although we don't think the CEO pay is too high, considering negative investor returns, it is more generous than modest.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 4 warning signs (and 1 which is a bit concerning) in Verb Technology Company we think you should know about.
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.
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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