Is MIND C.T.I. Ltd’s (NASDAQ:MNDO) CEO Salary Justified?

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Eisinger Iancu has been the CEO of MIND C.T.I. Ltd (NASDAQ:MNDO) since 1995. 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for MIND C.T.I

How Does Eisinger Iancu’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that MIND C.T.I. Ltd has a market cap of US$48m, and is paying total annual CEO compensation of US$503k. (This is based on the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$240k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$298k.

As you can see, Eisinger Iancu is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean MIND C.T.I. Ltd is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see a visual representation of the CEO compensation at MIND C.T.I, below.

NasdaqGM:MNDO CEO Compensation, February 21st 2019
NasdaqGM:MNDO CEO Compensation, February 21st 2019

Is MIND C.T.I. Ltd Growing?

MIND C.T.I. Ltd has increased its earnings per share (EPS) by an average of 1.3% a year, over the last three years (using a line of best fit). Revenue was pretty flat on last year.

I generally like to see a little revenue growth, but the improvement in EPS is good. It’s hard to reach a conclusion about business performance right now. This may be one to watch. We don’t have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has MIND C.T.I. Ltd Been A Good Investment?

Boasting a total shareholder return of 43% over three years, MIND C.T.I. Ltd has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.

In Summary…

We compared total CEO remuneration at MIND C.T.I. Ltd 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.

One might like to have seen stronger growth, but shareholder returns have been pleasing, over the last three years. Considering this fine result for investors, we daresay the CEO compensation might be apt. So you may want to check if insiders are buying MIND C.T.I shares with their own money (free access).

Important note: MIND C.T.I may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.