Daniel Baker has been the CEO of NVE Corporation (NASDAQ:NVEC) since 2001. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Daniel Baker’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that NVE Corporation has a market cap of US$456m, and is paying total annual CEO compensation of US$394k. (This figure is for the year to 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$300k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.6m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at NVE has changed over time.
Is NVE Corporation Growing?
Over the last three years NVE Corporation has grown its earnings per share (EPS) by an average of 5.6% per year. It achieved revenue growth of 3.3% over the last year.
I’d prefer higher revenue growth, but the modest improvement in EPS is good. Considering these factors I’d say performance has been pretty decent, though not amazing.
We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has NVE Corporation Been A Good Investment?
Boasting a total shareholder return of 99% over three years, NVE Corporation has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
It looks like NVE Corporation pays its CEO less than similar sized companies.
Daniel Baker is paid less than what is normal at similar size companies, and the total shareholder return has been pleasing over the last three years. We would like to see EPS growth, but in our view it seems the CEO is modestly remunerated. Shareholders may want to check for free if NVE insiders are buying or selling shares.
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 email@example.com.