Most Shareholders Will Probably Find That The CEO Compensation For ManTech International Corporation (NASDAQ:MANT) Is Reasonable

Under the guidance of CEO Kevin Phillips, ManTech International Corporation (NASDAQ:MANT) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 21 May 2021. Here is our take on why we think the CEO compensation looks appropriate.

See our latest analysis for ManTech International

Comparing ManTech International Corporation's CEO Compensation With the industry

According to our data, ManTech International Corporation has a market capitalization of US$3.5b, and paid its CEO total annual compensation worth US$5.7m over the year to December 2020. That's a notable increase of 49% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$821k.

In comparison with other companies in the industry with market capitalizations ranging from US$2.0b to US$6.4b, the reported median CEO total compensation was US$7.9m. So it looks like ManTech International compensates Kevin Phillips in line with the median for the industry. Furthermore, Kevin Phillips directly owns US$9.8m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2020	2019	Proportion (2020)
Salary	US$821k	US$938k	14%
Other	US$4.9m	US$2.9m	86%
Total Compensation	US$5.7m	US$3.8m	100%

On an industry level, around 23% of total compensation represents salary and 77% is other remuneration. ManTech International sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at ManTech International Corporation's Growth Numbers

Over the last three years, ManTech International Corporation has not seen its earnings per share change much, though there is a slight positive movement. In the last year, its revenue is up 9.0%.

We would argue that the improvement in revenue is good, but isn't particularly impressive, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has ManTech International Corporation Been A Good Investment?

Most shareholders would probably be pleased with ManTech International Corporation for providing a total return of 68% over three years. 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.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

So you may want to check if insiders are buying ManTech International shares with their own money (free access).

Important note: ManTech International 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.

If you’re looking to trade ManTech International, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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 (at) simplywallst.com.