Yahoo Finance How Much Did Finjan Holdings, Inc.'s (NASDAQ:FNJN) CEO Pocket Last Year?
In 2014 Phil Hartstein was appointed CEO of Finjan Holdings, Inc. (NASDAQ:FNJN). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Finjan Holdings
How Does Phil Hartstein's Compensation Compare With Similar Sized Companies?
Our data indicates that Finjan Holdings, Inc. is worth US$64m, and total annual CEO compensation was reported as US$2.1m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$390k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$523k.
It would therefore appear that Finjan Holdings, Inc. pays Phil Hartstein more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Finjan Holdings has changed from year to year.
Is Finjan Holdings, Inc. Growing?
Finjan Holdings, Inc. has reduced its earnings per share by an average of 11% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is down 88%.
Unfortunately, earnings per share have trended lower over the last three years. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has Finjan Holdings, Inc. Been A Good Investment?
I think that the total shareholder return of 77%, over three years, would leave most Finjan Holdings, Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
We compared total CEO remuneration at Finjan Holdings, Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
We think many shareholders would be underwhelmed with the business growth over the last three years. However, we can't argue with the strong returns to shareholders, over the same time period. Given this situation we doubt shareholders are particularly concerned about the CEO compensation. Whatever your view on compensation, you might want to check if insiders are buying or selling Finjan Holdings shares (free trial).
Important note: Finjan Holdings 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.
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