In 1998 Carl Guild was appointed CEO of Technical Communications Corporation (NASDAQ:TCCO). 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Carl Guild’s Compensation Compare With Similar Sized Companies?
Our data indicates that Technical Communications Corporation is worth US$5.2m, and total annual CEO compensation is US$298k. (This number is for the twelve months until 2017). It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$285k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$304k.
So Carl Guild is paid around the average of the companies we looked at. 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 a visual representation of the CEO compensation at Technical Communications, below.
Is Technical Communications Corporation Growing?
On average over the last three years, Technical Communications Corporation has grown earnings per share (EPS) by 37% each year. Its revenue is up 26% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see.
We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Technical Communications Corporation Been A Good Investment?
Since shareholders would have lost about 10% over three years, some Technical Communications Corporation shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
Carl Guild is paid around what is normal the leaders of comparable size companies.
We like that the company is growing EPS, but it’s disappointing to see negative shareholder returns over three years. We’d be surprised if shareholders want to see a pay rise for the CEO, but we’d stop short of calling their pay too generous. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Technical Communications (free visualization of insider trades).
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.