Should You Worry About Network-1 Technologies Inc’s (NYSEMKT:NTIP) CEO Salary Level?
Corey Horowitz has been the CEO of Network-1 Technologies Inc (NYSEMKT:NTIP) since 2003. 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. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Network-1 Technologies
How Does Corey Horowitz’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Network-1 Technologies Inc has a market cap of US$67m, and is paying total annual CEO compensation of US$2m. 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$291k.
As you can see, Corey Horowitz is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Network-1 Technologies Inc is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Network-1 Technologies, below.
Is Network-1 Technologies Inc Growing?
Network-1 Technologies Inc has increased its earnings per share (EPS) by an average of 18% a year, over the last three years In the last year, its revenue is down -50%.
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.
We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Network-1 Technologies Inc Been A Good Investment?
Most shareholders would probably be pleased with Network-1 Technologies Inc for providing a total return of 38% over three years. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
In Summary…
We compared total CEO remuneration at Network-1 Technologies Inc with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. So you may want to check if insiders are buying Network-1 Technologies Inc shares with their own money (free access).
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
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 editorial-team@simplywallst.com.
