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A Quick Analysis On Aspen Group's (NASDAQ:ASPU) CEO Compensation

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Simply Wall St
·4 min read
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Mike Mathews has been the CEO of Aspen Group, Inc. (NASDAQ:ASPU) since 2012, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Aspen Group.

See our latest analysis for Aspen Group

How Does Total Compensation For Mike Mathews Compare With Other Companies In The Industry?

According to our data, Aspen Group, Inc. has a market capitalization of US$241m, and paid its CEO total annual compensation worth US$945k over the year to April 2020. That is, the compensation was roughly the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$328k.

On examining similar-sized companies in the industry with market capitalizations between US$100m and US$400m, we discovered that the median CEO total compensation of that group was US$1.4m. Accordingly, Aspen Group pays its CEO under the industry median. Moreover, Mike Mathews also holds US$8.8m worth of Aspen Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component

2020

2019

Proportion (2020)

Salary

US$328k

US$325k

35%

Other

US$617k

US$622k

65%

Total Compensation

US$945k

US$947k

100%

On an industry level, around 18% of total compensation represents salary and 82% is other remuneration. According to our research, Aspen Group has allocated a higher percentage of pay to salary in comparison to the wider industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
ceo-compensation

A Look at Aspen Group, Inc.'s Growth Numbers

Aspen Group, Inc. has seen its earnings per share (EPS) increase by 7.7% a year over the past three years. It achieved revenue growth of 43% over the last year.

We like the look of the strong year-on-year improvement in revenue. Combined with modest EPS growth, we get a good impression of the company. We wouldn't say this is necessarily top notch growth, but it is certainly promising. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Aspen Group, Inc. Been A Good Investment?

Boasting a total shareholder return of 33% over three years, Aspen Group, Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

As we touched on above, Aspen Group, Inc. is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. In contrast, shareholder returns have been excellent over the past three years, and that’s certainly a promising trend to keep an eye on. Considering this fine result for investors, we believe CEO compensation to be apt.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Aspen Group that investors should think about before committing capital to this stock.

Important note: Aspen Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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 (at) simplywallst.com.