Eisinger Iancu has been the CEO of MIND C.T.I. Ltd (NASDAQ:MNDO) since 1995, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
View our latest analysis for MIND C.T.I
Comparing MIND C.T.I. Ltd's CEO Compensation With the industry
At the time of writing, our data shows that MIND C.T.I. Ltd has a market capitalization of US$52m, and reported total annual CEO compensation of US$522k for the year to December 2019. That's a fairly small increase of 3.6% over the previous year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$240k.
For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$499k. This suggests that MIND C.T.I remunerates its CEO largely in line with the industry average. Furthermore, Eisinger Iancu directly owns US$8.6m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | US$240k | US$240k | 46% |
| Other | US$282k | US$264k | 54% |
| Total Compensation | US$522k | US$504k | 100% |
Talking in terms of the industry, salary represented approximately 13% of total compensation out of all the companies we analyzed, while other remuneration made up 87% of the pie. According to our research, MIND C.T.I has allocated a higher percentage of pay to salary in comparison to the wider 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 MIND C.T.I. Ltd's Growth Numbers
Over the past three years, MIND C.T.I. Ltd has seen its earnings per share (EPS) grow by 1.6% per year. It achieved revenue growth of 15% over the last year.
We would argue that the modest growth in revenue is a notable positive. And, while modest, the EPS growth is noticeable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. 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?
Most shareholders would probably be pleased with MIND C.T.I. Ltd for providing a total return of 34% 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...
As previously discussed, Eisinger is compensated close to the median for companies of its size, and which belong to the same industry. But the company has been found wanting in terms of EPS growth over the past three years. At the same time, shareholder returns have remained strong over the same period. We would like to see EPS growth from the business, although we wouldn't say the CEO compensation is high.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 2 warning signs for MIND C.T.I that investors should look into moving forward.
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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About NasdaqGM:MNDO
MIND C.T.I
Develops, markets, sells, and implements billing and customer care software solutions for communication service providers in the Americas, Europe, Israel, the Asia Pacific, and Africa.
Flawless balance sheet and good value.
