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In 2015 Al Bala was appointed CEO of Mannatech, Incorporated (NASDAQ:MTEX). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Al Bala’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Mannatech, Incorporated has a market cap of US$42m, and is paying total annual CEO compensation of US$427k. (This number is for the twelve months until December 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$400k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$419k.
So Al Bala 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.
The graphic below shows how CEO compensation at Mannatech has changed from year to year.
Is Mannatech, Incorporated Growing?
Mannatech, Incorporated has reduced its earnings per share by an average of 116% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is down -1.8%.
Few shareholders would be pleased to read that earnings per share are lower over three years. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Mannatech, Incorporated Been A Good Investment?
With a three year total loss of 1.5%, Mannatech, Incorporated would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
Al Bala is paid around the same as most CEOs of similar size companies.
The company isn’t growing EPS, and shareholder returns have been disappointing. Suffice it to say, we don’t think the CEO is underpaid! Shareholders may want to check for free if Mannatech insiders are buying or selling shares.
If you want to buy a stock that is better than Mannatech, 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 email@example.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.