Simon Biddiscombe has been the CEO of MobileIron, Inc. (NASDAQ:MOBL) since 2017. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. 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 MobileIron
How Does Simon Biddiscombe's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that MobileIron, Inc. has a market cap of US$458m, and reported total annual CEO compensation of US$1.1m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$485k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$2.0m.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where MobileIron stands. Speaking on an industry level, we can see that nearly 13% of total compensation represents salary, while the remainder of 87% is other remuneration. MobileIron pays out 45% of aggregate payment in the shape of a salary, which is significantly higher than the industry average.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance. You can see, below, how CEO compensation at MobileIron has changed over time.
Is MobileIron, Inc. Growing?
MobileIron, Inc. has seen earnings per share (EPS) move positively by an average of 20% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 6.2%.
This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to check this free visual report on analyst forecasts for future earnings.
Has MobileIron, Inc. Been A Good Investment?
Since shareholders would have lost about 9.0% over three years, some MobileIron, Inc. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
MobileIron, Inc. is currently paying its CEO below what is normal for companies of its size.
Many would consider this to indicate that the pay is modest since the business is growing. Unfortunately, some shareholders may be disappointed with their returns, given the company's performance over the last three years. So while we would not say that Simon Biddiscombe is generously paid, it would be good to see an improvement in business performance before too an increase in pay. When I see fairly low remuneration, combined with earnings per share growth, but without big share price gains, it makes me want to research the potential for future gains. Shifting gears from CEO pay for a second, we've picked out 3 warning signs for MobileIron that investors should be aware of in a dynamic business environment.
If you want to buy a stock that is better than MobileIron, this free list of high return, low debt companies is a great place to look.
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.
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