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A Look At FireEye's (NASDAQ:FEYE) CEO Remuneration

Simply Wall St
·3 mins read

Kevin Mandia has been the CEO of FireEye, Inc. (NASDAQ:FEYE) 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 FireEye.

Check out our latest analysis for FireEye

How Does Total Compensation For Kevin Mandia Compare With Other Companies In The Industry?

At the time of writing, our data shows that FireEye, Inc. has a market capitalization of US$2.8b, and reported total annual CEO compensation of US$7.7m for the year to December 2019. We note that's an increase of 18% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$425k.

On examining similar-sized companies in the industry with market capitalizations between US$2.0b and US$6.4b, we discovered that the median CEO total compensation of that group was US$5.5m. Accordingly, our analysis reveals that FireEye, Inc. pays Kevin Mandia north of the industry median. Furthermore, Kevin Mandia directly owns US$41m worth of shares in the company, implying that they are deeply invested in the company's success.

Component

2019

2018

Proportion (2019)

Salary

US$425k

US$419k

5%

Other

US$7.3m

US$6.1m

95%

Total Compensation

US$7.7m

US$6.5m

100%

Speaking on an industry level, nearly 11% of total compensation represents salary, while the remainder of 89% is other remuneration. In FireEye's case, non-salary compensation represents a greater slice of total remuneration, in comparison 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

FireEye, Inc.'s Growth

FireEye, Inc. has seen its earnings per share (EPS) increase by 15% a year over the past three years. Its revenue is up 6.8% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has FireEye, Inc. Been A Good Investment?

Given the total shareholder loss of 26% over three years, many shareholders in FireEye, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As we touched on above, FireEye, Inc. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, we must not forget that the EPS growth has been very strong, but shareholder returns — over the same period — have been disappointing. Although we'd stop short of calling it inappropriate, we think Kevin is earning a very handsome sum.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 3 warning signs for FireEye that you should be aware of before investing.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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@simplywallst.com.