NASDAQ:VRME) in 2017, 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 look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for VerifyMe.” data-reactid=”28″ type=”text”>Patrick White became the CEO of VerifyMe, Inc. (NASDAQ:VRME) in 2017, 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 look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for VerifyMe.
How Does Total Compensation For Patrick White Compare With Other Companies In The Industry?
At the time of writing, our data shows that VerifyMe, Inc. has a market capitalization of US$19m, and reported total annual CEO compensation of US$319k for the year to December 2019. That’s a notable increase of 14% on last year. Notably, the salary which is US$200.0k, represents most of the total compensation being paid.
In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$375k. From this we gather that Patrick White is paid around the median for CEOs in the industry. Furthermore, Patrick White directly owns US$334k worth of shares in the company.
Talking in terms of the industry, salary represented approximately 35% of total compensation out of all the companies we analyzed, while other remuneration made up 65% of the pie. VerifyMe 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.
A Look at VerifyMe, Inc.’s Growth Numbers
Over the past three years, VerifyMe, Inc. has seen its earnings per share (EPS) grow by 78% per year. Its revenue is up 109% over the last year.
this data-rich visualization of earnings, revenue and cash flow.” data-reactid=”54″ type=”text”>Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has VerifyMe, Inc. Been A Good Investment?
Given the total shareholder loss of 30% over three years, many shareholders in VerifyMe, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
As previously discussed, Patrick is compensated close to the median for companies of its size, and which belong to the same industry. At the same time, the company has logged negative shareholder returns over the last three years. But on the bright side, EPS growth is positive over the same period. It’s tough for us to say CEO compensation is too generous when EPS growth is positive, but negative investor returns will irk shareholders and reduce any chances of a raise.
4 warning signs (and 2 which are concerning) in VerifyMe we think you should know about.” data-reactid=”59″ type=”text”>We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 4 warning signs (and 2 which are concerning) in VerifyMe we think you should know about.
list of interesting companies. ” data-reactid=”60″ type=”text”>Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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.