Dan Mondor has been the CEO of Inseego Corp. (NASDAQ:INSG) since 2017. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Dan Mondor's Compensation Compare With Similar Sized Companies?
According to our data, Inseego Corp. has a market capitalization of US$571m, and paid its CEO total annual compensation worth US$2.6m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$508k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.7m.
As you can see, Dan Mondor is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Inseego Corp. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Inseego, below.
Is Inseego Corp. Growing?
Over the last three years Inseego Corp. has grown its earnings per share (EPS) by an average of 60% per year (using a line of best fit). It achieved revenue growth of 16% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Inseego Corp. Been A Good Investment?
Boasting a total shareholder return of 191% over three years, Inseego Corp. 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 Inseego Corp., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. On top of that, in the same period, returns to shareholders have been great. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Inseego.
Important note: Inseego 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.
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