Peter Bauer became the CEO of Mimecast Limited (NASDAQ:MIME) in 2003. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Peter Bauer's Compensation Compare With Similar Sized Companies?
Our data indicates that Mimecast Limited is worth US$2.5b, and total annual CEO compensation is US$1.7m. (This figure is for the year to March 2019). We note that's an increase of 171% above last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$349k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$5.1m.
A first glance this seems like a real positive for shareholders, since Peter Bauer is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at Mimecast has changed from year to year.
Is Mimecast Limited Growing?
Over the last three years Mimecast Limited has shrunk its earnings per share by an average of 33% per year (measured with a line of best fit). Its revenue is up 28% over last year.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. You might want to check this free visual report on analyst forecasts for future earnings.
Has Mimecast Limited Been A Good Investment?
Boasting a total shareholder return of 136% over three years, Mimecast Limited 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.
It appears that Mimecast Limited remunerates its CEO below most similar sized companies.
It's well worth noting that while Peter Bauer is paid below what is normal at companies of similar size, the returns have been very pleasing, over the last three years. So, while it might be nice to have better EPS growth, on our analysis the CEO compensation is quite modest. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Mimecast.
Important note: Mimecast may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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