James Strange has been the CEO of Intelligent Systems Corporation (NYSEMKT:INS) since 1985. 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. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does James Strange’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Intelligent Systems Corporation has a market cap of US$316m, and is paying total annual CEO compensation of US$304k. (This is based on the year to December 2017). Notably, the salary of US$300k is the vast majority of the CEO compensation. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO total compensation was US$1.5m.
Most shareholders would consider it a positive that James Strange takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at Intelligent Systems has changed from year to year.
Is Intelligent Systems Corporation Growing?
Over the last three years Intelligent Systems Corporation has grown its earnings per share (EPS) by an average of 125% per year (using a line of best fit). It achieved revenue growth of 119% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Intelligent Systems Corporation Been A Good Investment?
Boasting a total shareholder return of 997% over three years, Intelligent Systems Corporation has done well by shareholders. 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.
Intelligent Systems Corporation is currently paying its CEO below what is normal for companies of its size. Since the business is growing, many would argue this suggests the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that James Strange deserves a raise!
It’s not often we see shareholders do so well, and yet the CEO is paid modestly. But it is even better if company insiders are also buying shares with their own money. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Intelligent Systems.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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