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In 2013 David Klenk was appointed CEO of Electro-Sensors Inc (NASDAQ:ELSE). 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 David Klenk’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Electro-Sensors Inc has a market cap of US$13m, and is paying total annual CEO compensation of US$251k. That’s less than last year. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$293k.
So David Klenk 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, below, how CEO compensation at Electro-Sensors has changed over time.
Is Electro-Sensors Inc Growing?
Electro-Sensors Inc has reduced its earnings per share by an average of 87% a year, over the last three years. In the last year, its revenue is down -3.6%.
Sadly for shareholders, earnings per share are actually down, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Electro-Sensors Inc Been A Good Investment?
Given the total loss of 0.5% over three years, many shareholders in Electro-Sensors Inc are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
David Klenk is paid around the same as most CEOs of similar size companies.
After looking at EPS and total shareholder returns, it’s certainly hard to argue the company has performed well, since both metrics are down. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves.
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.