How Much Is Image Sensing Systems, Inc. (NASDAQ:ISNS) Paying Its CEO?

    Chad Stelzig has been the CEO of Image Sensing Systems, Inc. (NASDAQ:ISNS) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

    See our latest analysis for Image Sensing Systems

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    Comparing Image Sensing Systems, Inc.'s CEO Compensation With the industry

    According to our data, Image Sensing Systems, Inc. has a market capitalization of US$20m, and paid its CEO total annual compensation worth US$318k over the year to December 2019. That's a slightly lower by 7.9% over the previous year. We note that the salary portion, which stands at US$260.0k constitutes the majority of total compensation received by the CEO.

    On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$369k. So it looks like Image Sensing Systems compensates Chad Stelzig in line with the median for the industry. Moreover, Chad Stelzig also holds US$144k worth of Image Sensing Systems stock directly under their own name.

    Component20192018Proportion (2019)
    SalaryUS$260kUS$238k82%
    OtherUS$58kUS$108k18%
    Total CompensationUS$318k US$346k100%

    Speaking on an industry level, nearly 36% of total compensation represents salary, while the remainder of 64% is other remuneration. It's interesting to note that Image Sensing Systems pays out a greater portion of remuneration through salary, compared to the industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

    ceo-compensation
    NasdaqCM:ISNS CEO Compensation August 21st 2020

    A Look at Image Sensing Systems, Inc.'s Growth Numbers

    Over the past three years, Image Sensing Systems, Inc. has seen its earnings per share (EPS) grow by 168% per year. Its revenue is down 10% over the previous year.

    Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

    Has Image Sensing Systems, Inc. Been A Good Investment?

    Image Sensing Systems, Inc. has served shareholders reasonably well, with a total return of 21% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

    In Summary...

    As we touched on above, Image Sensing Systems, Inc. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But EPS growth for the company has been strong over the last three years, though shareholder returns in comparison haven't been as impressive. As a result of these considerations, we would suggest the compensation is reasonable, but looking ahead shareholders will likely want to see healthier returns.

    It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 2 warning signs (and 1 which is significant) in Image Sensing Systems we think you should know about.

    Important note: Image Sensing Systems 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.

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    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.
    *Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020


    Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

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