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Eisinger Iancu became the CEO of MIND C.T.I. Ltd (NASDAQ:MNDO) in 1995, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for MIND C.T.I.
Comparing MIND C.T.I. Ltd's CEO Compensation With the industry
According to our data, MIND C.T.I. Ltd has a market capitalization of US$46m, and paid its CEO total annual compensation worth US$522k over the year to December 2019. That's a modest increase of 3.6% on the prior year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$240k.
In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$516k. So it looks like MIND C.T.I compensates Eisinger Iancu in line with the median for the industry. Moreover, Eisinger Iancu also holds US$7.7m worth of MIND C.T.I stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Talking in terms of the industry, salary represented approximately 13% of total compensation out of all the companies we analyzed, while other remuneration made up 87% of the pie. MIND C.T.I pays out 46% of remuneration in the form of a salary, significantly higher than the industry average. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at MIND C.T.I. Ltd's Growth Numbers
MIND C.T.I. Ltd has seen its earnings per share (EPS) increase by 1.1% a year over the past three years. In the last year, its revenue is up 23%.
This revenue growth could really point to a brighter future. And the modest growth in EPS isn't bad, either. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. Although we don't have analyst forecasts, 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?
We think that the total shareholder return of 36%, over three years, would leave most MIND C.T.I. Ltd shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
As previously discussed, Eisinger is compensated close to the median for companies of its size, and which belong to the same industry. However, the company's EPS growth numbers over the last three years is not that impressive. On the other hand, shareholder returns over the same period have been very healthy. There is room for improved company performance, but we don't see the CEO compensation as a big issue here.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 3 warning signs for MIND C.T.I that investors should look into moving forward.
Important note: MIND C.T.I is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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.
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