Does Mobile Mini, Inc.’s (NASDAQ:MINI) CEO Salary Reflect Performance?
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Erik Olsson became the CEO of Mobile Mini, Inc. (NASDAQ:MINI) in 2013. 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 process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Mobile Mini
How Does Erik Olsson’s Compensation Compare With Similar Sized Companies?
Our data indicates that Mobile Mini, Inc. is worth US$1.6b, and total annual CEO compensation is US$4.6m. (This number is for the twelve months until 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$1.0m. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO compensation was US$3.5m.
Thus we can conclude that Erik Olsson receives more in total compensation than the median of a group of companies in the same market, and of similar size to Mobile Mini, Inc.. However, this doesn’t necessarily mean the pay 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 Mobile Mini, below.
Is Mobile Mini, Inc. Growing?
On average over the last three years, Mobile Mini, Inc. has grown earnings per share (EPS) by 31% each year (using a line of best fit). It achieved revenue growth of 11% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Mobile Mini, Inc. Been A Good Investment?
Boasting a total shareholder return of 52% over three years, Mobile Mini, Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary…
We compared total CEO remuneration at Mobile Mini, Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Even better, returns to shareholders have been plentiful, over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. Shareholders may want to check for free if Mobile Mini insiders are buying or selling shares.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
