Jack Abuhoff became the CEO of Innodata Inc (NASDAQ:INOD) in 1997. First, this article will compare CEO compensation with compensation at similar sized companies. 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 Jack Abuhoff’s Compensation Compare With Similar Sized Companies?
According to our data, Innodata Inc has a market capitalization of US$40m, and pays its CEO total annual compensation worth US$512k. (This number is for the twelve months until 2017). It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$500k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$296k.
Thus we can conclude that Jack Abuhoff receives more in total compensation than the median of a group of companies in the same market, and of similar size to Innodata Inc. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Innodata, below.
Is Innodata Inc Growing?
Over the last three years Innodata Inc has shrunk its earnings per share by an average of 11% per year. Its revenue is down -4.7% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.
We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Innodata Inc Been A Good Investment?
Since shareholders would have lost about 46% over three years, some Innodata Inc shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
We compared the total CEO remuneration paid by Innodata Inc, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
We think many shareholders would be underwhelmed with the business growth over the last three years.
Just as bad, share price gains for investors have failed to materialize, over the same period. In our opinion the CEO might be paid too generously! So you may want to check if insiders are buying Innodata shares with their own money (free access).
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
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 email@example.com.