Himesh Bhise became the CEO of Synacor, Inc. (NASDAQ:SYNC) in 2014. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Himesh Bhise's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Synacor, Inc. has a market cap of US$53m, and reported total annual CEO compensation of US$639k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$440k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$606k.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Synacor stands. Talking in terms of the sector, salary represented approximately 13% of total compensation out of all the companies we analysed, while other remuneration made up 87% of the pie. It's interesting to note that Synacor pays out a greater portion of remuneration through salary, in comparison to the wider industry.
That means Himesh Bhise 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 Synacor has changed over time.
Is Synacor, Inc. Growing?
Synacor, Inc. has seen earnings per share (EPS) move positively by an average of 34% a year, over the last three years (using a line of best fit). Its revenue is down 15% over last year.
This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. You might want to check this free visual report on analyst forecasts for future earnings.
Has Synacor, Inc. Been A Good Investment?
Given the total loss of 63% over three years, many shareholders in Synacor, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
Himesh Bhise is paid around the same as most CEOs of similar size companies.
We'd say the company can boast of its EPS growth, 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. Shifting gears from CEO pay for a second, we've picked out 3 warning signs for Synacor that investors should be aware of in a dynamic business environment.
If you want to buy a stock that is better than Synacor, this free list of high return, low debt companies is a great place to look.
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