In 2017 Dan Mondor was appointed CEO of Inseego Corp. (NASDAQ:INSG). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
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How Does Dan Mondor's Compensation Compare With Similar Sized Companies?
According to our data, Inseego Corp. has a market capitalization of US$700m, and paid its CEO total annual compensation worth US$2.6m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$508k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO total compensation of that group was US$3.2m.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. On an industry level, roughly 27% of total compensation represents salary and 73% is other remuneration. Inseego is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation
That means Dan Mondor receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance. You can see a visual representation of the CEO compensation at Inseego, below.
Is Inseego Corp. Growing?
Over the last three years Inseego Corp. has seen earnings per share (EPS) move in a positive direction by an average of 60% per year (using a line of best fit). It achieved revenue growth of 8.4% 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. You might want to check this free visual report on analyst forecasts for future earnings.
Has Inseego Corp. Been A Good Investment?
I think that the total shareholder return of 221%, over three years, would leave most Inseego Corp. shareholders smiling. 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...
Dan Mondor is paid around the same as most CEOs of similar size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! Shifting gears from CEO pay for a second, we've picked out 4 warning signs for Inseego that investors should be aware of in a dynamic business environment.
Important note: Inseego may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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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