Mark Aslett became the CEO of Mercury Systems, Inc. (NASDAQ:MRCY) in 2007. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. 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 Mark Aslett’s Compensation Compare With Similar Sized Companies?
According to our data, Mercury Systems, Inc. has a market capitalization of US$3.0b, and pays its CEO total annual compensation worth US$5.5m. (This number is for the twelve months until June 2018). While we always look at total compensation first, we note that the salary component is less, at US$589k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$4.7m.
So Mark Aslett receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Mercury Systems has changed over time.
Is Mercury Systems, Inc. Growing?
On average over the last three years, Mercury Systems, Inc. has grown earnings per share (EPS) by 14% each year (using a line of best fit). In the last year, its revenue is up 28%.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Mercury Systems, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Mercury Systems, Inc. for providing a total return of 279% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Mark Aslett is paid around what is normal the leaders of comparable size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Mercury Systems (free visualization of insider trades).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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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. Thank you for reading.