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In 1994 Dan Bodner was appointed CEO of Verint Systems Inc. (NASDAQ:VRNT). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Dan Bodner’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Verint Systems Inc. has a market cap of US$3.4b, and is paying total annual CEO compensation of US$8.3m. (This figure is for the year to 2018). While we always look at total compensation first, we note that the salary component is less, at US$755k. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO compensation was US$4.8m.
Thus we can conclude that Dan Bodner receives more in total compensation than the median of a group of companies in the same market, and of similar size to Verint Systems Inc.. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Verint Systems has changed over time.
Is Verint Systems Inc. Growing?
Verint Systems Inc. has increased its earnings per share (EPS) by an average of 49% a year, over the last three years (using a line of best fit). It achieved revenue growth of 9.5% over the last year.
This demonstrates that the company has been improving recently. A good result. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.
Has Verint Systems Inc. Been A Good Investment?
I think that the total shareholder return of 63%, over three years, would leave most Verint Systems Inc. shareholders smiling. 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.
We examined the amount Verint Systems Inc. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Whatever your view on compensation, you might want to check if insiders are buying or selling Verint Systems shares (free trial).
If you want to buy a stock that is better than Verint Systems, this free list of high return, low debt companies is a great place to look.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.