NASDAQ:LLNW) since 2012. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Limelight Networks.” data-reactid=”28″>This article will reflect on the compensation paid to Bob Lento who has served as CEO of Limelight Networks, Inc. (NASDAQ:LLNW) since 2012. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Limelight Networks.
Check out our latest analysis for Limelight Networks ” data-reactid=”29″>Check out our latest analysis for Limelight Networks
How Does Total Compensation For Bob Lento Compare With Other Companies In The Industry?
Our data indicates that Limelight Networks, Inc. has a market capitalization of US$745m, and total annual CEO compensation was reported as US$3.0m for the year to December 2019. We note that’s a small decrease of 5.7% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$320k.
On examining similar-sized companies in the industry with market capitalizations between US$400m and US$1.6b, we discovered that the median CEO total compensation of that group was US$3.2m. From this we gather that Bob Lento is paid around the median for CEOs in the industry. Furthermore, Bob Lento directly owns US$9.1m worth of shares in the company, implying that they are deeply invested in the company’s success.
Talking in terms of the industry, salary represented approximately 14% of total compensation out of all the companies we analyzed, while other remuneration made up 86% of the pie. Limelight Networks pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it’s an indicator that the executive’s salary is tied to company performance.
Limelight Networks, Inc.’s Growth
Limelight Networks, Inc. has reduced its earnings per share by 22% a year over the last three years. In the last year, its revenue is up 24%.
this free visual depiction of what analysts expect for the future.” data-reactid=”54″>The reduction in earnings, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Limelight Networks, Inc. Been A Good Investment?
Boasting a total shareholder return of 69% over three years, Limelight Networks, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
As we noted earlier, Limelight Networks pays its CEO in line with similar-sized companies belonging to the same industry. Shareholder returns for the company have been strong for the last three years. At the same time, revenues are also moving northwards at a healthy pace. However, on a concerning note, EPS is not growing. However, considering overall positive performance, we think Bob, shareholders might not be too worried about the CEO’s compensation.
2 warning signs for Limelight Networks that you should be aware of before investing.” data-reactid=”59″>While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That’s why we did some digging and identified 2 warning signs for Limelight Networks that you should be aware of before investing.
list of high return, low debt companies is a great place to look.” data-reactid=”60″>Switching gears from Limelight Networks, 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.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”65″>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.