H. Jin became the CEO of Telenav, Inc. (NASDAQ:TNAV) in 2001. 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. 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 H. Jin's Compensation Compare With Similar Sized Companies?
According to our data, Telenav, Inc. has a market capitalization of US$248m, and paid its CEO total annual compensation worth US$1.0m over the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at US$380k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO total compensation was US$1.4m.
Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Telenav. Speaking on an industry level, we can see that nearly 12% of total compensation represents salary, while the remainder of 88% is other remuneration. According to our research, Telenav has allocated a higher percentage of pay to salary in comparison to the broader sector.
So H. Jin 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, below, how CEO compensation at Telenav has changed over time.
Is Telenav, Inc. Growing?
On average over the last three years, Telenav, Inc. has seen earnings per share (EPS) move in a favourable direction by 37% each year (using a line of best fit). In the last year, its revenue is up 37%.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Telenav, Inc. Been A Good Investment?
Since shareholders would have lost about 37% over three years, some Telenav, Inc. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
H. Jin is paid around what is normal for the leaders of comparable size companies.
We'd say the company can boast of its EPS growth, but we find the returns over the last three years to be lacking. Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. Taking a breather from CEO compensation, we've spotted 3 warning signs for Telenav (of which 1 is concerning!) you should know about in order to have a holistic understanding of the stock.
Important note: Telenav may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
If you spot an error that warrants correction, please contact the editor at email@example.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.
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