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Chad Stelzig became the CEO of Image Sensing Systems, Inc. (NASDAQ:ISNS) in 2017. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Chad Stelzig's Compensation Compare With Similar Sized Companies?
Our data indicates that Image Sensing Systems, Inc. is worth US$24m, and total annual CEO compensation was reported as US$337k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$238k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$506k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Image Sensing Systems has changed over time.
Is Image Sensing Systems, Inc. Growing?
Image Sensing Systems, Inc. has increased its earnings per share (EPS) by an average of 64% a year, over the last three years (using a line of best fit). Its revenue is down 2.6% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Image Sensing Systems, Inc. Been A Good Investment?
With a total shareholder return of 28% over three years, Image Sensing Systems, Inc. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
Image Sensing Systems, Inc. is currently paying its CEO below what is normal for companies of its size.
Many would consider this to indicate that the pay is modest since the business is growing. While returns over the last few years haven't been top notch, there is nothing to suggest to us that Chad Stelzig is overcompensated. It's great to see a company that pays its CEO reasonably, even while growing. But for me, it's even better if insiders are also buying shares with their own cold, hard, cash. Whatever your view on compensation, you might want to check if insiders are buying or selling Image Sensing Systems shares (free trial).
Important note: Image Sensing Systems 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.
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.
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. Thank you for reading.