We Think The Compensation For MIND Technology, Inc.'s (NASDAQ:MIND) CEO Looks About Right

Shareholders may be wondering what CEO Rob Capps plans to do to improve the less than great performance at MIND Technology, Inc. (NASDAQ:MIND) recently. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 15 July 2021. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

See our latest analysis for MIND Technology

How Does Total Compensation For Rob Capps Compare With Other Companies In The Industry?

At the time of writing, our data shows that MIND Technology, Inc. has a market capitalization of US$26m, and reported total annual CEO compensation of US$267k for the year to January 2021. Notably, that's a decrease of 31% over the year before. Notably, the salary which is US$255.0k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$565k. Accordingly, MIND Technology pays its CEO under the industry median. What's more, Rob Capps holds US$81k worth of shares in the company in their own name.

On an industry level, roughly 21% of total compensation represents salary and 79% is other remuneration. MIND Technology pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

MIND Technology, Inc.'s Growth

MIND Technology, Inc. has seen its earnings per share (EPS) increase by 22% a year over the past three years. In the last year, its revenue is down 18%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has MIND Technology, Inc. Been A Good Investment?

With a total shareholder return of -50% over three years, MIND Technology, Inc. shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

MIND Technology pays its CEO a majority of compensation through a salary. The fact that shareholders are sitting on a loss is certainly disheartening. The share price trend has diverged with the robust growth in EPS however, suggesting there may be other factors that could be driving the price performance. There needs to be more focus by management and the board to examine why the share price has diverged from fundamentals. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 3 warning signs for MIND Technology (of which 1 is concerning!) that you should know about in order to have a holistic understanding of the stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.
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