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Rick Bloom became the CEO of Support.com, Inc. (NASDAQ:SPRT) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Rick Bloom's Compensation Compare With Similar Sized Companies?
Our data indicates that Support.com, Inc. is worth US$31m, and total annual CEO compensation is US$796k. (This number is for the twelve months until December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$480k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$498k.
It would therefore appear that Support.com, Inc. pays Rick Bloom 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 better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Support.com, below.
Is Support.com, Inc. Growing?
Support.com, Inc. has increased its earnings per share (EPS) by an average of 48% a year, over the last three years (using a line of best fit). It achieved revenue growth of 7.7% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Support.com, Inc. Been A Good Investment?
Given the total loss of 37% over three years, many shareholders in Support.com, Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
We examined the amount Support.com, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Support.com (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.