Al Bala became the CEO of Mannatech, Incorporated (NASDAQ:MTEX) in 2015. 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. This method should give us information to assess how appropriately the company pays the CEO.
How Does Al Bala's Compensation Compare With Similar Sized Companies?
According to our data, Mannatech, Incorporated has a market capitalization of US$42m, and paid its CEO total annual compensation worth US$652k over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$420k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$493k.
As you can see, Al Bala is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Mannatech, Incorporated is paying too much. 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 Mannatech, below.
Is Mannatech, Incorporated Growing?
Over the last three years Mannatech, Incorporated has shrunk its earnings per share by an average of 73% per year (measured with a line of best fit). Its revenue is down 5.2% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Mannatech, Incorporated Been A Good Investment?
With a total shareholder return of 11% over three years, Mannatech, Incorporated shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
We compared total CEO remuneration at Mannatech, Incorporated with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
We think many shareholders would be underwhelmed with the business growth over the last three years. And while shareholder returns have been respectable, they have hardly been superb. So we think more research is needed, but we don't think the CEO underpaid. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Mannatech (free visualization of insider trades).
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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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.