Brian Faith became the CEO of QuickLogic Corporation (NASDAQ:QUIK) in 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Brian Faith’s Compensation Compare With Similar Sized Companies?
Our data indicates that QuickLogic Corporation is worth US$79m, and total annual CEO compensation is US$503k. (This is based on the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$260k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO compensation to be US$418k.
That means Brian Faith receives fairly typical remuneration for the CEO of a company that size. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at QuickLogic has changed over time.
Is QuickLogic Corporation Growing?
QuickLogic Corporation has increased its earnings per share (EPS) by an average of 29% a year, over the last three years (using a line of best fit). Its revenue is up 4.0% 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. It could be important to check this free visual depiction of what analysts expect for the future.
Has QuickLogic Corporation Been A Good Investment?
Since shareholders would have lost about 44% over three years, some QuickLogic Corporation shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
Brian Faith is paid around what is normal the leaders of comparable size companies.
We think that the EPS growth is very pleasing, but we find the returns over the last three years to be lacking. Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. Shareholders may want to check for free if QuickLogic insiders are buying or selling shares.
Important note: QuickLogic may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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