Most Shareholders Will Probably Agree With Rubicon Technology, Inc.’s (NASDAQ:RBCN) CEO Compensation
CEO Timothy Brog did a good job and performed relatively well at Rubicon Technology, Inc. (NASDAQ: RBCN) recently. Given this development, CEO compensation is unlikely to be the main focus of shareholders at the Annual General Meeting on June 24, 2021. Based on our analysis of the following data, we consider the CEO compensation to be appropriate for the time being.
How does Timothy Brog’s total compensation compare to other companies in the industry?
At the time of writing, our data shows Rubicon Technology, Inc. had a market cap of $ 24 million last year. In particular, the $ 350,000 salary represents the majority of the total compensation paid.
For comparison, other companies in the industry with market cap less than $ 200 million reported an average total CEO compensation of $ 465,000. From this we can see that Timothy Brog is paid roughly median for CEOs in the industry. In addition, Timothy Brog directly owns $ 1.0 million in shares in the company.
|salary||350 thousand US dollars||350 thousand US dollars||66%|
|Other||$ 177,000||445 thousand US dollars||34%|
|Total compensation||527 thousand US dollars||795 thousand US dollars||100%|
At the industry level, nearly 14% of total compensation is salary, while the remainder of 86% is other compensation. According to our research, Rubicon Technology assigned a higher salary percentage to salary compared to the broader industry. If the total compensation approaches the salary, this indicates that the variable, usually performance-related component is lower.
Rubicon Technology, Inc.
Rubicon Technology, Inc. has increased earnings per share (EPS) by 88% per year for the past three years. Last year it achieved a sales growth of 7.2%.
Shareholders would be happy if the company has improved over the past few years. It’s good to see a bit of revenue growth as it suggests the company has the ability to grow sustainably. While we don’t have any analyst forecast, you may want to make an assessment this data-rich visualization of profit, sales and cash flow.
Was Rubicon Technology, Inc. a Good Investment?
With a total return of 27% over three years, Rubicon Technology, Inc. shareholders would generally be reasonably satisfied. But they probably don’t want the CEO to pay more than is usual for companies of about the same size.
In summary …
Given the company’s decent performance, few, if any, shareholders should have questions about Executive Board compensation at the upcoming Annual General Meeting. Despite the positive results, we continue to assume that all proposed increases in Executive Board remuneration will be examined on a case-by-case basis and linked to the performance results.
CEO compensation can have a massive impact on performance, but it’s only one element. So we dug something and identified it 3 warning signs for Rubicon Technology that you should know before investing.
Important NOTE: Rubicon Technology is an exciting stock, but we understand investors are looking for an unencumbered balance sheet and blockbuster returns. Maybe you will find something better in the this list of interesting companies with high ROE and low debt.
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This article from Simply Wall St is of a general nature. It is not a recommendation to buy or sell stocks and does not take into account your goals or your financial situation. Our goal is to provide you with long-term, focused analysis based on fundamentals. Note that our analysis may not take into account the latest company announcements or quality material, which may be sensitive to the price. Simply Wall St has no position in the stocks mentioned.
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