What Did PDF Solutions, Inc.'s (NASDAQ:PDFS) CEO Take Home Last Year?

In 2000 John Kibarian was appointed CEO of PDF Solutions, Inc. (NASDAQ:PDFS). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for PDF Solutions

How Does John Kibarian's Compensation Compare With Similar Sized Companies?

According to our data, PDF Solutions, Inc. has a market capitalization of US$545m, and paid its CEO total annual compensation worth US$400k over the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$400k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.7m.

Most shareholders would consider it a positive that John Kibarian takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.

You can see, below, how CEO compensation at PDF Solutions has changed over time.

Is PDF Solutions, Inc. Growing?

On average over the last three years, PDF Solutions, Inc. has shrunk earnings per share by 99% each year (measured with a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.

Sadly for shareholders, earnings per share are actually down, over three years. And the flat revenue hardly impresses. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.

Has PDF Solutions, Inc. Been A Good Investment?

Since shareholders would have lost about 24% over three years, some PDF Solutions, 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...

It looks like PDF Solutions, Inc. pays its CEO less than similar sized companies.

The compensation paid to John Kibarian is lower than is usual at similar sized companies, but the eps growth is lacking, just like the returns (over three years). We would not call the pay too generous, but nor would we claim the CEO is underpaid, given lacklustre business performance. So you may want to check if insiders are buying PDF Solutions shares with their own money (free access).

Important note: PDF Solutions 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.