Al Bala has been the CEO of Mannatech, Incorporated (NASDAQ:MTEX) since 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 process should give us an idea about how appropriately the CEO is paid.
How Does Al Bala’s Compensation Compare With Similar Sized Companies?
Our data indicates that Mannatech, Incorporated is worth US$36m, and total annual CEO compensation is US$652k. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$420k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$479k.
As you can see, Al Bala is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Mannatech, Incorporated is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Mannatech has changed over time.
Is Mannatech, Incorporated Growing?
On average over the last three years, Mannatech, Incorporated has shrunk earnings per share by 73% each year (measured with a line of best fit). In the last year, its revenue is down -5.2%.
Unfortunately, earnings per share have trended lower over the last three years. This is compounded by the fact revenue is actually down on last year. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
Has Mannatech, Incorporated Been A Good Investment?
With a three year total loss of 1.9%, Mannatech, Incorporated would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
We compared total CEO remuneration at Mannatech, Incorporated with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
Arguably worse, investors are without a positive return for the last three years. Some might well form the view that the CEO is paid too generously! Whatever your view on compensation, you might want to check if insiders are buying or selling Mannatech shares (free trial).
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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