In 2013 Erik Olsson was appointed CEO of Mobile Mini, Inc. (NASDAQ:MINI). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Erik Olsson's Compensation Compare With Similar Sized Companies?
According to our data, Mobile Mini, Inc. has a market capitalization of US$1.4b, and pays its CEO total annual compensation worth US$4.8m. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$1.0m. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO total compensation was US$4.1m.
So Erik Olsson is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Mobile Mini has changed over time.
Is Mobile Mini, Inc. Growing?
Over the last three years Mobile Mini, Inc. has shrunk its earnings per share by an average of 15% per year (measured with a line of best fit). It achieved revenue growth of 7.9% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.
Has Mobile Mini, Inc. Been A Good Investment?
With a total shareholder return of 14% over three years, Mobile Mini, Inc. shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
Remuneration for Erik Olsson is close enough to the median pay for a CEO of a similar sized company .
We feel that earnings per share have been a bit disappointing, but and we don't think the total returns are amazing. We're not saying the CEO pay is too generous, but we'd venture the company should look to improve its business metrics (and share price) before paying any more. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Mobile Mini.
Important note: Mobile Mini may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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