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Is MIND C.T.I. Ltd's (NASDAQ:MNDO) CEO Salary Justified?

Simply Wall St

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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. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for MIND C.T.I

How Does Eisinger Iancu's Compensation Compare With Similar Sized Companies?

According to our data, MIND C.T.I. Ltd has a market capitalization of US$44m, and pays its CEO total annual compensation worth US$504k. (This figure is for the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$240k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$465k.

So Eisinger Iancu is paid around the average of 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.

You can see a visual representation of the CEO compensation at MIND C.T.I, below.

NasdaqGM:MNDO CEO Compensation, July 2nd 2019

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 5.9% per year (using a line of best fit). 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. 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?

I think that the total shareholder return of 48%, over three years, would leave most MIND C.T.I. Ltd shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Remuneration for Eisinger Iancu is close enough to the median pay for a CEO of a similar sized company .

While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So considering most shareholders would be happy, we'd say the CEO pay is appropriate. So you may want to check if insiders are buying MIND C.T.I shares with their own money (free access).

If you want to buy a stock that is better than MIND C.T.I, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.