Yahoo Finance Is POET Technologies Inc. (CVE:PTK) Excessively Paying Its CEO?
In 2015 Suresh Venkatesan was appointed CEO of POET Technologies Inc. (CVE:PTK). 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for POET Technologies
How Does Suresh Venkatesan's Compensation Compare With Similar Sized Companies?
Our data indicates that POET Technologies Inc. is worth CA$107m, and total annual CEO compensation is US$2.3m. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$440k. 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$107k.
As you can see, Suresh Venkatesan is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean POET Technologies Inc. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at POET Technologies, below.
Is POET Technologies Inc. Growing?
POET Technologies Inc. has increased its earnings per share (EPS) by an average of 9.1% a year, over the last three years (using a line of best fit). Its revenue is up 44% over last year.
It's great to see that revenue growth is strong. And in that context, the modest EPS improvement certainly isn't shabby. So while I'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! It could be important to check this free visual depiction of what analysts expect for the future.
Has POET Technologies Inc. Been A Good Investment?
Since shareholders would have lost about 54% over three years, some POET Technologies Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We compared total CEO remuneration at POET Technologies Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. Whatever your view on compensation, you might want to check if insiders are buying or selling POET Technologies shares (free trial).
Important note: POET Technologies 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.
