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Vince Arnone became the CEO of Fuel Tech, Inc. (NASDAQ:FTEK) in 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Vince Arnone's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Fuel Tech, Inc. has a market cap of US$19m, and reported total annual CEO compensation of US$514k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$425k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$540k.
So Vince Arnone 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 a visual representation of the CEO compensation at Fuel Tech, below.
Is Fuel Tech, Inc. Growing?
Over the last three years Fuel Tech, Inc. has grown its earnings per share (EPS) by an average of 89% per year (using a line of best fit). Its revenue is down 24% over last year.
This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Fuel Tech, Inc. Been A Good Investment?
Given the total loss of 27% over three years, many shareholders in Fuel Tech, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
Vince Arnone is paid around what is normal for 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. Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. So you may want to check if insiders are buying Fuel Tech shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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