Should You Be Pleased About The CEO Pay At VirTra, Inc.’s (NASDAQ:VTSI) Simply Wall St January 16, 2020
Bob Ferris has been the CEO of VirTra, Inc. (NASDAQ:VTSI) since 2008. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. 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.
Check out our latest analysis for VirTra
How Does Bob Ferris’s Compensation Compare With Similar Sized Companies? At the time of writing, our data says that VirTra, Inc. has a market cap of US$33m, and reported total annual CEO compensation of US$371k for the year to December 2018. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$234k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$520k.
That means Bob Ferris receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at VirTra has changed over time.
NasdaqCM:VTSI CEO Compensation, January 15th 2020 NasdaqCM:VTSI CEO Compensation, January 15th 2020 Is VirTra, Inc. Growing? VirTra, Inc. has reduced its earnings per share by an average of 50% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is down 14%.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the fact that revenue is down year on year arguably paints an ugly picture. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. You might want to check this free visual report on analyst forecasts for future earnings.
Has VirTra, Inc. Been A Good Investment? Given the total loss of 8.5% over three years, many shareholders in VirTra, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary… Bob Ferris is paid around what is normal the leaders of comparable size companies.
After looking at EPS and total shareholder returns, it’s certainly hard to argue the company has performed well, since both metrics are down. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at VirTra.
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.
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.
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