Eisinger Iancu has been the CEO of MIND C.T.I. Ltd (NASDAQ:MNDO) since 1995. First, this article will compare CEO compensation with compensation at similar sized companies. 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 Eisinger Iancu’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that MIND C.T.I. Ltd has a market cap of US$43m, and is paying total annual CEO compensation of US$503k. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$240k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO compensation to be US$307k.
It would therefore appear that MIND C.T.I. Ltd pays Eisinger Iancu more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration 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 MIND C.T.I, below.
Is MIND C.T.I. Ltd Growing?
Over the last three years MIND C.T.I. Ltd has grown its earnings per share (EPS) by an average of 1.3% per year. Revenue was pretty flat on last year.
I generally like to see a little revenue growth, but I’m happy with the EPS growth. These two metric are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching.
We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has MIND C.T.I. Ltd Been A Good Investment?
MIND C.T.I. Ltd has generated a total shareholder return of 27% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
We examined the amount MIND C.T.I. Ltd pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
One might like to have seen stronger growth, and the shareholder returns have failed to inspire, over the last three years. In conclusion we think the company should definitely focus on improving the business before awarding any large pay rises. Whatever your view on compensation, you might want to check if insiders are buying or selling MIND C.T.I shares (free trial).
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings 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 firstname.lastname@example.org.