Yahoo Finance Here's Why Shareholders Will Not Be Complaining About QuickLogic Corporation's (NASDAQ:QUIK) CEO Pay Packet
Key Insights
QuickLogic will host its Annual General Meeting on 9th of May
Total pay for CEO Brian Faith includes US$354.4k salary
The total compensation is similar to the average for the industry
QuickLogic's total shareholder return over the past three years was 104% while its EPS grew by 55% over the past three years
It would be hard to discount the role that CEO Brian Faith has played in delivering the impressive results at QuickLogic Corporation (NASDAQ:QUIK) recently. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 9th of May. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.
Check out our latest analysis for QuickLogic
Comparing QuickLogic Corporation's CEO Compensation With The Industry
Our data indicates that QuickLogic Corporation has a market capitalization of US$203m, and total annual CEO compensation was reported as US$1.4m for the year to December 2023. Notably, that's an increase of 8.0% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$354k.
On comparing similar companies from the American Semiconductor industry with market caps ranging from US$100m to US$400m, we found that the median CEO total compensation was US$1.5m. From this we gather that Brian Faith is paid around the median for CEOs in the industry. Furthermore, Brian Faith directly owns US$2.6m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2023 | Proportion (2023) |
Salary | US$354k | US$341k | 25% |
Other | US$1.1m | US$997k | 75% |
Total Compensation | US$1.4m | US$1.3m | 100% |
Speaking on an industry level, nearly 11% of total compensation represents salary, while the remainder of 89% is other remuneration. QuickLogic is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at QuickLogic Corporation's Growth Numbers
QuickLogic Corporation's earnings per share (EPS) grew 55% per year over the last three years. In the last year, its revenue is up 31%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has QuickLogic Corporation Been A Good Investment?
We think that the total shareholder return of 104%, over three years, would leave most QuickLogic Corporation shareholders smiling. 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...
Seeing that company performance has been quite good recently, some shareholders may feel that CEO compensation may not be the biggest focus in the upcoming AGM. In saying that, some shareholders may feel that the more important issues to be addressed may be how the management plans to steer the company towards sustainable profitability in the future.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 3 warning signs for QuickLogic that investors should think about before committing capital to this stock.
Important note: QuickLogic is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
