Is SilverSun Technologies, Inc.'s (NASDAQ:SSNT) CEO Paid At A Competitive Rate?
In 2004 Mark Meller was appointed CEO of SilverSun Technologies, Inc. (NASDAQ:SSNT). 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for SilverSun Technologies
How Does Mark Meller's Compensation Compare With Similar Sized Companies?
According to our data, SilverSun Technologies, Inc. has a market capitalization of US$15m, and pays its CEO total annual compensation worth US$705k. (This is based on the year to December 2018). Notably, the salary of US$705k is the vast majority of the CEO compensation. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$477k.
It would therefore appear that SilverSun Technologies, Inc. pays Mark Meller 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. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at SilverSun Technologies, below.
Is SilverSun Technologies, Inc. Growing?
SilverSun Technologies, Inc. has reduced its earnings per share by an average of 81% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 15%.
Unfortunately, earnings per share have trended lower over the last three years. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for me to put aside my concerns around earnings. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has SilverSun Technologies, Inc. Been A Good Investment?
Most shareholders would probably be pleased with SilverSun Technologies, Inc. for providing a total return of 78% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
We examined the amount SilverSun Technologies, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
We think many shareholders would be underwhelmed with the business growth over the last three years.
On the other hand, returns have been good, so the company is doing something right. Given this situation we doubt shareholders are particularly concerned about the CEO compensation. Shareholders may want to check for free if SilverSun Technologies insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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. Thank you for reading.
