In 1994 Mike Brown was appointed CEO of Euronet Worldwide, Inc. (NASDAQ:EEFT). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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.
How Does Mike Brown's Compensation Compare With Similar Sized Companies?
According to our data, Euronet Worldwide, Inc. has a market capitalization of US$8.0b, and paid its CEO total annual compensation worth US$6.5m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$850k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We examined companies with market caps from US$4.0b to US$12b, and discovered that the median CEO total compensation of that group was US$6.8m.
So Mike Brown receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Euronet Worldwide has changed from year to year.
Is Euronet Worldwide, Inc. Growing?
On average over the last three years, Euronet Worldwide, Inc. has grown earnings per share (EPS) by 13% each year (using a line of best fit). Its revenue is up 9.0% over last year.
This demonstrates that the company has been improving recently. A good result. 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 Euronet Worldwide, Inc. Been A Good Investment?
Boasting a total shareholder return of 76% over three years, Euronet Worldwide, Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Mike Brown is paid around the same as most CEOs of similar size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. So you may want to check if insiders are buying Euronet Worldwide shares with their own money (free access).
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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