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Al Bala became the CEO of Mannatech, Incorporated (NASDAQ:MTEX) in 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. 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$28m, and paid its CEO total annual compensation worth US$475k over the year to December 2019. That's less than last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$440k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$610k.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Mannatech stands. Speaking on an industry level, we can see that nearly 72% of total compensation represents salary, while the remainder of 28% is other remuneration. Mannatech does not set aside a larger portion of remuneration in the form of salary, maintaining the same rate as the wider market.
So Al Bala receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance. The graphic below shows how CEO compensation at Mannatech has changed from year to year.
Is Mannatech, Incorporated Growing?
Mannatech, Incorporated has seen earnings per share (EPS) move positively by an average of 49% a year, over the last three years (using a line of best fit). Its revenue is down 8.1% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Mannatech, Incorporated Been A Good Investment?
Since shareholders would have lost about 9.9% over three years, some Mannatech, Incorporated shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
Remuneration for Al Bala is close enough to the median pay for a CEO of a similar sized company .
We think that the EPS growth is very pleasing, but it's disappointing to see negative shareholder returns over three years. Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. On another note, Mannatech has 4 warning signs (and 1 which is significant) we think you should know about.
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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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. Thank you for reading.