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How Much Is Rimini Street, Inc. (NASDAQ:RMNI) CEO Getting Paid?

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Simply Wall St
·3 min read
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Seth Ravin has been the CEO of Rimini Street, Inc. (NASDAQ:RMNI) since 2005, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Rimini Street

How Does Total Compensation For Seth Ravin Compare With Other Companies In The Industry?

Our data indicates that Rimini Street, Inc. has a market capitalization of US$252m, and total annual CEO compensation was reported as US$730k for the year to December 2019. We note that's a decrease of 16% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$300k.

On comparing similar companies from the same industry with market caps ranging from US$100m to US$400m, we found that the median CEO total compensation was US$865k. From this we gather that Seth Ravin is paid around the median for CEOs in the industry. Furthermore, Seth Ravin directly owns US$44m worth of shares in the company, implying that they are deeply invested in the company's success.

Component

2019

2018

Proportion (2019)

Salary

US$300k

US$300k

41%

Other

US$430k

US$568k

59%

Total Compensation

US$730k

US$868k

100%

Speaking on an industry level, nearly 12% of total compensation represents salary, while the remainder of 88% is other remuneration. According to our research, Rimini Street has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ceo-compensation
ceo-compensation

Rimini Street, Inc.'s Growth

Over the past three years, Rimini Street, Inc. has seen its earnings per share (EPS) grow by 30% per year. It achieved revenue growth of 13% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Rimini Street, Inc. Been A Good Investment?

With a three year total loss of 66% for the shareholders, Rimini Street, Inc. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

As we touched on above, Rimini Street, Inc. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. On the other hand, the company has logged negative shareholder returns over the previous three years. However, EPS growth is positive over the same time frame. It's tough for us to say CEO compensation is too generous when EPS growth is positive, but negative investor returns will irk shareholders and reduce any chances of a raise.

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 Rimini Street that investors should look into moving forward.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.