U.S. Markets closed

Is Superconductor Technologies Inc.'s (NASDAQ:SCON) CEO Pay Fair?

Simply Wall St

Jeff Quiram became the CEO of Superconductor Technologies Inc. (NASDAQ:SCON) in 2005. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Superconductor Technologies

How Does Jeff Quiram's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Superconductor Technologies Inc. has a market cap of US$3.8m, and reported total annual CEO compensation of US$413k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$324k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$517k.

So Jeff Quiram is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at Superconductor Technologies, below.

NasdaqCM:SCON CEO Compensation, January 14th 2020

Is Superconductor Technologies Inc. Growing?

Superconductor Technologies Inc. has increased its earnings per share (EPS) by an average of 89% a year, over the last three years (using a line of best fit). Its revenue is down 92% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important. Shareholders might be interested in this free visualization of analyst forecasts.

Has Superconductor Technologies Inc. Been A Good Investment?

Given the total loss of 98% over three years, many shareholders in Superconductor Technologies Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Remuneration for Jeff Quiram is close enough to the median pay for a CEO of a similar sized company .

We like that the company is growing EPS, but we cannot say the same about the lacklustre shareholder returns (over the last three years). Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Superconductor Technologies.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.