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Is Mitcham Industries, Inc. (NASDAQ:MIND) Excessively Paying Its CEO?

Miguel Kauffman

Rob Capps became the CEO of Mitcham Industries, Inc. (NASDAQ:MIND) in 2015. 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 process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Mitcham Industries

How Does Rob Capps’s Compensation Compare With Similar Sized Companies?

Our data indicates that Mitcham Industries, Inc. is worth US$36m, and total annual CEO compensation is US$451k. (This number is for the twelve months until 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$263k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$307k.

Thus we can conclude that Rob Capps receives more in total compensation than the median of a group of companies in the same market, and of similar size to Mitcham Industries, Inc.. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

The graphic below shows how CEO compensation at Mitcham Industries has changed from year to year.

NasdaqGS:MIND CEO Compensation December 25th 18

Is Mitcham Industries, Inc. Growing?

Over the last three years Mitcham Industries, Inc. has grown its earnings per share (EPS) by an average of 18% per year. Its revenue is down -19% over last year.

This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important.

You might want to check this free visual report on analyst forecasts for future earnings.

Has Mitcham Industries, Inc. Been A Good Investment?

Given the total loss of 6.8% over three years, many shareholders in Mitcham Industries, Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary…

We compared the total CEO remuneration paid by Mitcham Industries, Inc., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

However, the earnings per share growth over three years is certainly impressive. On the other hand returns to investors over the same period have probably disappointed many. While EPS is positive, we’d say shareholders would want better returns before the CEO is paid much more. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Mitcham Industries.

Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .

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 editorial-team@simplywallst.com.