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A Look At ePlus' (NASDAQ:PLUS) CEO Remuneration

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Simply Wall St
·4 min read
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Mark Marron has been the CEO of ePlus inc. (NASDAQ:PLUS) since 2016, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for ePlus.

View our latest analysis for ePlus

Comparing ePlus inc.'s CEO Compensation With the industry

At the time of writing, our data shows that ePlus inc. has a market capitalization of US$1.2b, and reported total annual CEO compensation of US$4.0m for the year to March 2020. That's a notable increase of 27% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$800k.

On examining similar-sized companies in the industry with market capitalizations between US$1.0b and US$3.2b, we discovered that the median CEO total compensation of that group was US$3.9m. So it looks like ePlus compensates Mark Marron in line with the median for the industry. What's more, Mark Marron holds US$7.9m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component

2020

2019

Proportion (2020)

Salary

US$800k

US$800k

20%

Other

US$3.2m

US$2.4m

80%

Total Compensation

US$4.0m

US$3.2m

100%

Talking in terms of the industry, salary represented approximately 34% of total compensation out of all the companies we analyzed, while other remuneration made up 66% of the pie. ePlus pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
ceo-compensation

A Look at ePlus inc.'s Growth Numbers

ePlus inc.'s earnings per share (EPS) grew 11% per year over the last three years. Its revenue is up 8.1% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has ePlus inc. Been A Good Investment?

ePlus inc. has served shareholders reasonably well, with a total return of 12% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

As we touched on above, ePlus inc. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, it's admirable that over the last three years, EPS growth for the company has been impressive, though the same can't be said for investor returns. So considering these factors, we think the compensation is probably quite reasonable, but investor returns need a boost moving forward.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 3 warning signs for ePlus (of which 1 makes us a bit uncomfortable!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from ePlus, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.