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Mark Harding became the CEO of Pure Cycle Corporation (NASDAQ:PCYO) in 2005. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Mark Harding’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Pure Cycle Corporation has a market cap of US$243m, and is paying total annual CEO compensation of US$986k. (This number is for the twelve months until August 2018). We note that’s an increase of 18% above last year. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$400k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO compensation was US$906k.
So Mark Harding 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 Pure Cycle has changed over time.
Is Pure Cycle Corporation Growing?
Pure Cycle Corporation has increased its earnings per share (EPS) by an average of 41% a year, over the last three years (using a line of best fit). Its revenue is up 342% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Pure Cycle Corporation Been A Good Investment?
I think that the total shareholder return of 120%, over three years, would leave most Pure Cycle Corporation shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Mark Harding is paid around what is normal the leaders of comparable size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Pure Cycle (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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. Thank you for reading.