Rob Capps has been the CEO of Mitcham Industries, Inc. (NASDAQ:MIND) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Rob Capps’s Compensation Compare With Similar Sized Companies?
Our data indicates that Mitcham Industries, Inc. is worth US$15m, and total annual CEO compensation was reported as US$368k for the year to January 2019. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$263k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$602k.
Most shareholders would consider it a positive that Rob Capps takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it’s important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Mitcham Industries has changed over time.
Is Mitcham Industries, Inc. Growing?
Mitcham Industries, Inc. has increased its earnings per share (EPS) by an average of 31% a year, over the last three years (using a line of best fit). Its revenue is up 1.9% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions. We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Mitcham Industries, Inc. Been A Good Investment?
Given the total loss of 73% over three years, many shareholders in Mitcham Industries, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
It appears that Mitcham Industries, Inc. remunerates its CEO below most similar sized companies.
Many would consider this to indicate that the pay is modest since the business is growing. Unfortunately, some shareholders may be disappointed with their returns, given the company’s performance over the last three years. We’re not critical of the remuneration Rob Capps receives, but it would be good to see improved returns to shareholders before the remuneration grows too much. When I see fairly low remuneration, combined with earnings per share growth, but without big share price gains, it makes me want to research the potential for future gains. On another note, Mitcham Industries has 4 warning signs (and 1 which doesn’t sit too well with us) we think you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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