Tim Whelan became the CEO of Wireless Telecom Group, Inc. (NYSEMKT:WTT) in 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Tim Whelan's Compensation Compare With Similar Sized Companies?
Our data indicates that Wireless Telecom Group, Inc. is worth US$21m, and total annual CEO compensation was reported as US$353k for the year to December 2019. That's less than last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$325k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$598k.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. Speaking on an industry level, we can see that nearly 36% of total compensation represents salary, while the remainder of 64% is other remuneration. It's interesting to note that Wireless Telecom Group pays out a greater portion of remuneration through salary, in comparison to the wider industry.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance. You can see, below, how CEO compensation at Wireless Telecom Group has changed over time.
Is Wireless Telecom Group, Inc. Growing?
On average over the last three years, Wireless Telecom Group, Inc. has seen earnings per share (EPS) move in a favourable direction by 55% each year (using a line of best fit). Its revenue is down 7.3% over last year.
This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Wireless Telecom Group, Inc. Been A Good Investment?
With a three year total loss of 31%, Wireless Telecom Group, Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
Wireless Telecom Group, Inc. is currently paying its CEO below what is normal for companies of its size.
Many would consider this to indicate that the pay is modest since the business is growing. Few would deny that the total shareholder return over the last three years could have been a lot better. We're not critical of the remuneration Tim Whelan receives, but it would be good to see improved returns to shareholders before the remuneration grows too much. When I see fairly low remuneration, combined with earnings per share growth, but without big share price gains, it makes me want to research the potential for future gains. Shifting gears from CEO pay for a second, we've spotted 2 warning signs for Wireless Telecom Group you should be aware of, and 1 of them is concerning.
If you want to buy a stock that is better than Wireless Telecom Group, this free list of high return, low debt companies is a great place to look.
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