It's Unlikely That OneSpan Inc.'s (NASDAQ:OSPN) CEO Will See A Huge Pay Rise This Year

By
Simply Wall St
Published
June 02, 2021
NasdaqCM:OSPN
Source: Shutterstock

CEO Scott Clements has done a decent job of delivering relatively good performance at OneSpan Inc. (NASDAQ:OSPN) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 09 June 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for OneSpan

Comparing OneSpan Inc.'s CEO Compensation With the industry

Our data indicates that OneSpan Inc. has a market capitalization of US$1.1b, and total annual CEO compensation was reported as US$3.8m for the year to December 2020. We note that's an increase of 24% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$480k.

On comparing similar companies from the same industry with market caps ranging from US$400m to US$1.6b, we found that the median CEO total compensation was US$2.6m. This suggests that Scott Clements is paid more than the median for the industry. What's more, Scott Clements holds US$4.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component20202019Proportion (2020)
Salary US$480k US$465k 13%
Other US$3.3m US$2.6m 87%
Total CompensationUS$3.8m US$3.0m100%

Speaking on an industry level, nearly 11% of total compensation represents salary, while the remainder of 89% is other remuneration. OneSpan is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ceo-compensation
NasdaqCM:OSPN CEO Compensation June 2nd 2021

OneSpan Inc.'s Growth

OneSpan Inc. has seen its earnings per share (EPS) increase by 61% a year over the past three years. Its revenue is down 20% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has OneSpan Inc. Been A Good Investment?

OneSpan Inc. has served shareholders reasonably well, with a total return of 21% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling OneSpan (free visualization of insider trades).

Switching gears from OneSpan, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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