Yahoo Finance How Much is NetSol Technologies, Inc.'s (NASDAQ:NTWK) CEO Getting Paid?
Najeeb Ghauri has been the CEO of NetSol Technologies, Inc. (NASDAQ:NTWK) since 2006. 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.
View our latest analysis for NetSol Technologies
How Does Najeeb Ghauri's Compensation Compare With Similar Sized Companies?
Our data indicates that NetSol Technologies, Inc. is worth US$29m, and total annual CEO compensation was reported as US$1.3m for the year to June 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$675k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$609k.
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 12% of total compensation represents salary, while the remainder of 88% is other remuneration. NetSol Technologies is paying a higher share of its remuneration through a salary in comparison to the overall industry.
It would therefore appear that NetSol Technologies, Inc. pays Najeeb Ghauri more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance. You can see, below, how CEO compensation at NetSol Technologies has changed over time.
Is NetSol Technologies, Inc. Growing?
On average over the last three years, NetSol Technologies, Inc. has seen earnings per share (EPS) move in a favourable direction by 83% each year (using a line of best fit). It saw its revenue drop 5.0% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. It could be important to check this free visual depiction of what analysts expect for the future.
Has NetSol Technologies, Inc. Been A Good Investment?
With a three year total loss of 48%, NetSol Technologies, Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We examined the amount NetSol Technologies, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. On the other hand returns to investors over the same period have probably disappointed many. While EPS is moving in the right direction, we'd say shareholders would want better returns before the CEO is paid much more. On another note, we've spotted 3 warning signs for NetSol Technologies that investors should look into moving forward.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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