Mike Jamieson has been the CEO of MAM Software Group, Inc. (NASDAQ:MAMS) since 2010. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Mike Jamieson's Compensation Compare With Similar Sized Companies?
Our data indicates that MAM Software Group, Inc. is worth US$134m, and total annual CEO compensation is US$2.3m. (This number is for the twelve months until June 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$268k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$474k.
It would therefore appear that MAM Software Group, Inc. pays Mike Jamieson more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at MAM Software Group has changed from year to year.
Is MAM Software Group, Inc. Growing?
MAM Software Group, Inc. has increased its earnings per share (EPS) by an average of 4.2% a year, over the last three years (using a line of best fit). Its revenue is up 7.9% over last year.
I'd prefer higher revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. It could be important to check this free visual depiction of what analysts expect for the future.
Has MAM Software Group, Inc. Been A Good Investment?
Boasting a total shareholder return of 80% over three years, MAM Software 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.
We compared the total CEO remuneration paid by MAM Software Group, Inc., and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
One might like to have seen stronger growth, but shareholder returns have been pleasing, over the last three years. So, considering these tasty returns, the CEO compensation may be quite appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at MAM Software Group.
Important note: MAM Software Group 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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