Should You Worry About Rubicon Technology, Inc.'s (NASDAQ:RBCN) CEO Pay Cheque?
In 2017 Timothy Brog was appointed CEO of Rubicon Technology, Inc. (NASDAQ:RBCN). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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.
See our latest analysis for Rubicon Technology
How Does Timothy Brog's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Rubicon Technology, Inc. has a market cap of US$22m, and reported total annual CEO compensation of US$559k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$350k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$506k.
So Timothy Brog is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at Rubicon Technology, below.
Is Rubicon Technology, Inc. Growing?
Rubicon Technology, Inc. has increased its earnings per share (EPS) by an average of 94% a year, over the last three years (using a line of best fit). In the last year, its revenue is down 18%.
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 could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Rubicon Technology, Inc. Been A Good Investment?
Boasting a total shareholder return of 52% over three years, Rubicon Technology, Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
Timothy Brog is paid around the same as most CEOs of similar size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling Rubicon Technology shares (free trial).
Important note: Rubicon Technology may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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 editorial-team@simplywallst.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.
