Doug Valenti became the CEO of QuinStreet, Inc. (NASDAQ:QNST) in 1999. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Doug Valenti’s Compensation Compare With Similar Sized Companies?
According to our data, QuinStreet, Inc. has a market capitalization of US$783m, and pays its CEO total annual compensation worth US$1.6m. (This number is for the twelve months until 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$541k. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO compensation was US$2.4m.
Most shareholders would consider it a positive that Doug Valenti takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it’s important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at QuinStreet, below.
Is QuinStreet, Inc. Growing?
Over the last three years QuinStreet, Inc. has grown its earnings per share (EPS) by an average of 92% per year. In the last year, its revenue is up 37%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.
It could be important to check this free visual depiction of what analysts expect for the future.
Has QuinStreet, Inc. Been A Good Investment?
Boasting a total shareholder return of 270% over three years, QuinStreet, Inc. has done well by shareholders. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
QuinStreet, Inc. is currently paying its CEO below what is normal for companies of its size. Considering the underlying business is growing earnings, this would suggest the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Doug Valenti deserves a raise!
It is relatively rare to see a modestly paid CEO when performance is so impressive. The cherry on top would be if company insiders are buying shares with their own money. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at QuinStreet.
Or you might prefer examine intently this intuitive graph showing past 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 firstname.lastname@example.org.