George Holmes became the CEO of Resonant Inc. (NASDAQ:RESN) in 2017. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does George Holmes's Compensation Compare With Similar Sized Companies?
Our data indicates that Resonant Inc. is worth US$71m, and total annual CEO compensation was reported as US$816k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$365k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$506k.
It would therefore appear that Resonant Inc. pays George Holmes more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration 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, below, how CEO compensation at Resonant has changed over time.
Is Resonant Inc. Growing?
Over the last three years Resonant Inc. has grown its earnings per share (EPS) by an average of 17% per year (using a line of best fit). In the last year, its revenue is down 29%.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. You might want to check this free visual report on analyst forecasts for future earnings.
Has Resonant Inc. Been A Good Investment?
Given the total loss of 57% over three years, many shareholders in Resonant Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared the total CEO remuneration paid by Resonant Inc., and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On the other hand returns to investors over the same period have probably disappointed many. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. Shareholders may want to check for free if Resonant insiders are buying or selling shares.
If you want to buy a stock that is better than Resonant, this free list of high return, low debt companies is a great place to look.
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