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Should You Worry About Sunworks, Inc.'s (NASDAQ:SUNW) CEO Pay?

Simply Wall St

Chuck Cargile became the CEO of Sunworks, Inc. (NASDAQ:SUNW) in 2017. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Sunworks

How Does Chuck Cargile's Compensation Compare With Similar Sized Companies?

According to our data, Sunworks, Inc. has a market capitalization of US$2.6m, and paid its CEO total annual compensation worth US$604k over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$300k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$587k.

That means Chuck Cargile receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at Sunworks, below.

NasdaqCM:SUNW CEO Compensation, March 16th 2020

Is Sunworks, Inc. Growing?

On average over the last three years, Sunworks, Inc. has grown earnings per share (EPS) by 17% each year (using a line of best fit). Its revenue is down 8.9% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Shareholders might be interested in this free visualization of analyst forecasts.

Has Sunworks, Inc. Been A Good Investment?

Since shareholders would have lost about 95% over three years, some Sunworks, Inc. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

Remuneration for Chuck Cargile is close enough to the median pay for a CEO of a similar sized company .

We'd say the company can boast of its EPS growth, but it's disappointing to see negative shareholder returns over three years. Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. On another note, Sunworks has 4 warning signs (and 1 which is potentially serious) we think you should know about.

Important note: Sunworks 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.

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.

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. Thank you for reading.