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How Is ePlus' (NASDAQ:PLUS) CEO Compensated?

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Simply Wall St
·4 min read
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Mark Marron has been the CEO of ePlus inc. (NASDAQ:PLUS) since 2016, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for ePlus.

See our latest analysis for ePlus

Comparing ePlus inc.'s CEO Compensation With the industry

At the time of writing, our data shows that ePlus inc. has a market capitalization of US$1.1b, and reported total annual CEO compensation of US$4.0m for the year to March 2020. Notably, that's an increase of 27% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$800k.

For comparison, other companies in the same industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$3.3m. From this we gather that Mark Marron is paid around the median for CEOs in the industry. What's more, Mark Marron holds US$7.5m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component

2020

2019

Proportion (2020)

Salary

US$800k

US$800k

20%

Other

US$3.2m

US$2.4m

80%

Total Compensation

US$4.0m

US$3.2m

100%

On an industry level, around 39% of total compensation represents salary and 61% is other remuneration. ePlus sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
ceo-compensation

A Look at ePlus inc.'s Growth Numbers

ePlus inc. has seen its earnings per share (EPS) increase by 11% a year over the past three years. In the last year, its revenue is up 12%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 ePlus inc. Been A Good Investment?

With a three year total loss of 3.5% for the shareholders, ePlus inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As we touched on above, ePlus inc. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. At the same time, the company has logged negative shareholder returns over the last three years. However, earnings growth is positive over the same time frame. Considering positive earnings growth, we'd say compensation is fair, but shareholders may be wary of a bump in pay before the company logs positive returns.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for ePlus that investors should think about before committing capital to this stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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.

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