Oblong, Inc.'s (NASDAQ:OBLG) CEO Compensation Looks Acceptable To Us And Here's Why

Shareholders may be wondering what CEO Pete Holst plans to do to improve the less than great performance at Oblong, Inc. (NASDAQ:OBLG) recently. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 30 December 2022. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. We think CEO compensation looks appropriate given the data we have put together.

View our latest analysis for Oblong

Comparing Oblong, Inc.'s CEO Compensation With The Industry

Our data indicates that Oblong, Inc. has a market capitalization of US$3.8m, and total annual CEO compensation was reported as US$455k for the year to December 2021. We note that's an increase of 8.7% above last year. Notably, the salary which is US$246.3k, represents a considerable chunk of the total compensation being paid.

For comparison, other companies in the American Software industry with market capitalizations below US$200m, reported a median total CEO compensation of US$674k. That is to say, Pete Holst is paid under the industry median.

Speaking on an industry level, nearly 9% of total compensation represents salary, while the remainder of 91% is other remuneration. According to our research, Oblong has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Oblong, Inc.'s Growth Numbers

Over the past three years, Oblong, Inc. has seen its earnings per share (EPS) grow by 50% per year. It saw its revenue drop 38% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Oblong, Inc. Been A Good Investment?

The return of -92% over three years would not have pleased Oblong, Inc. shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The fact that shareholders have earned a negative share price return is certainly disconcerting. This diverges with the robust growth in EPS, suggesting that there is a large discrepancy between share price and fundamentals. There needs to be more focus by management and the board to examine why the share price has diverged from fundamentals. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 3 warning signs for Oblong that investors should be aware of in a dynamic business environment.

Switching gears from Oblong, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.

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