Shareholders Will Probably Hold Off On Increasing Quest Resource Holding Corporation's (NASDAQ:QRHC) CEO Compensation For The Time Being
Performance at Quest Resource Holding Corporation (NASDAQ:QRHC) has been reasonably good and CEO S. Hatch has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 01 July 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
View our latest analysis for Quest Resource Holding
Comparing Quest Resource Holding Corporation's CEO Compensation With the industry
At the time of writing, our data shows that Quest Resource Holding Corporation has a market capitalization of US$115m, and reported total annual CEO compensation of US$862k for the year to December 2020. We note that's an increase of 11% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$339k.
On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$508k. Accordingly, our analysis reveals that Quest Resource Holding Corporation pays S. Hatch north of the industry median. Moreover, S. Hatch also holds US$130k worth of Quest Resource Holding stock directly under their own name.
Component | 2020 | 2019 | Proportion (2020) |
Salary | US$339k | US$331k | 39% |
Other | US$523k | US$445k | 61% |
Total Compensation | US$862k | US$775k | 100% |
On an industry level, roughly 24% of total compensation represents salary and 76% is other remuneration. Quest Resource Holding is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Quest Resource Holding Corporation's Growth
Over the past three years, Quest Resource Holding Corporation has seen its earnings per share (EPS) grow by 127% per year. In the last year, its revenue is up 11%.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Quest Resource Holding Corporation Been A Good Investment?
We think that the total shareholder return of 209%, over three years, would leave most Quest Resource Holding Corporation shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.
CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Quest Resource Holding that investors should look into moving forward.
Switching gears from Quest Resource Holding, 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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