Simon Biddiscombe became the CEO of MobileIron, Inc. (NASDAQ:MOBL) in 2017. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Simon Biddiscombe's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that MobileIron, Inc. has a market cap of US$439m, and reported total annual CEO compensation of US$1.1m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$485k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$2.1m.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where MobileIron stands. Speaking on an industry level, we can see that nearly 14% of total compensation represents salary, while the remainder of 86% is other remuneration. MobileIron is paying a higher share of its remuneration through a salary in comparison to the overall industry.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance. You can see a visual representation of the CEO compensation at MobileIron, below.
Is MobileIron, Inc. Growing?
MobileIron, Inc. has seen earnings per share (EPS) move positively by an average of 20% a year, over the last three years (using a line of best fit). Its revenue is up 6.2% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.
Has MobileIron, Inc. Been A Good Investment?
Since shareholders would have lost about 15% over three years, some MobileIron, Inc. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
MobileIron, Inc. is currently paying its CEO below what is normal for companies of its size.
Since the business is growing, many would argue this suggests the pay is modest. Few would deny that the total shareholder return over the last three years could have been a lot better. We're not critical of the remuneration Simon Biddiscombe receives, but it would be good to see improved returns to shareholders before the remuneration grows too much. In this case we may want to look deeper into the company. There are some real positives and we could see improved returns in the longer term. Shifting gears from CEO pay for a second, we've picked out 3 warning signs for MobileIron that investors should be aware of in a dynamic business environment.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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