Should You Worry About Insight Enterprises Inc’s (NASDAQ:NSIT) CEO Salary Level?
Ken Lamneck became the CEO of Insight Enterprises Inc (NASDAQ:NSIT) in 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. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Insight Enterprises
How Does Ken Lamneck’s Compensation Compare With Similar Sized Companies?
According to our data, Insight Enterprises Inc has a market capitalization of US$1.6b, and pays its CEO total annual compensation worth US$4m. We note that’s an increase of 11% above last year. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO compensation was US$3m.
As you can see, Ken Lamneck is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Insight Enterprises Inc 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 Insight Enterprises, below.
Is Insight Enterprises Inc Growing?
On average over the last three years, Insight Enterprises Inc has grown earnings per share (EPS) by 21% each year. It achieved revenue growth of 11% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Insight Enterprises Inc Been A Good Investment?
I think that the total shareholder return of 65%, over three years, would leave most Insight Enterprises Inc shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
We compared total CEO remuneration at Insight Enterprises Inc with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Insight Enterprises Inc (free visualization of insider trades).
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
