Yahoo Finance What Can We Conclude About Envision Solar International's (NASDAQ:EVSI) CEO Pay?
Desmond Wheatley became the CEO of Envision Solar International, Inc. (NASDAQ:EVSI) in 2011, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Envision Solar International pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
View our latest analysis for Envision Solar International
How Does Total Compensation For Desmond Wheatley Compare With Other Companies In The Industry?
According to our data, Envision Solar International, Inc. has a market capitalization of US$91m, and paid its CEO total annual compensation worth US$438k over the year to December 2019. We note that's an increase of 75% above last year. We note that the salary portion, which stands at US$252.1k constitutes the majority of total compensation received by the CEO.
For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$481k. This suggests that Envision Solar International remunerates its CEO largely in line with the industry average. What's more, Desmond Wheatley holds US$619k worth of shares in the company in their own name.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$252k | US$200k | 58% |
Other | US$185k | US$50k | 42% |
Total Compensation | US$438k | US$250k | 100% |
On an industry level, around 14% of total compensation represents salary and 86% is other remuneration. Envision Solar International is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Envision Solar International, Inc.'s Growth
Envision Solar International, Inc.'s earnings per share (EPS) grew 6.3% per year over the last three years. Its revenue is up 17% over the last year.
We think the revenue growth is good. And the modest growth in earnings per share isn't bad, either. So while performance isn't amazing, we think it really does seem quite respectable. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Envision Solar International, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Envision Solar International, Inc. for providing a total return of 88% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
As previously discussed, Desmond is compensated close to the median for companies of its size, and which belong to the same industry. But the business isn't reporting great numbers in terms of earnings growth. At the same time, shareholder returns have remained strong over the same period. So while shareholders shouldn't be overly concerned about CEO compensation, we suspect most would prefer to see improved performance, before a bump in pay.
CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 4 warning signs for Envision Solar International you should be aware of, and 1 of them is a bit concerning.
Switching gears from Envision Solar International, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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