Chad Stelzig became the CEO of Image Sensing Systems, Inc. (NASDAQ:ISNS) in 2017. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Image Sensing Systems
How Does Chad Stelzig's Compensation Compare With Similar Sized Companies?
According to our data, Image Sensing Systems, Inc. has a market capitalization of US$25m, and paid its CEO total annual compensation worth US$337k over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$238k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$498k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Image Sensing Systems has changed over time.
Is Image Sensing Systems, Inc. Growing?
Over the last three years Image Sensing Systems, Inc. has grown its earnings per share (EPS) by an average of 38% per year (using a line of best fit). It achieved revenue growth of 2.6% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions.
Has Image Sensing Systems, Inc. Been A Good Investment?
Boasting a total shareholder return of 35% over three years, Image Sensing Systems, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
It appears that Image Sensing Systems, Inc. remunerates its CEO below most similar sized companies.
Considering the underlying business is growing earnings, this would suggest the pay is modest. The strong history of shareholder returns might even have some thinking that Chad Stelzig 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. Whatever your view on compensation, you might want to check if insiders are buying or selling Image Sensing Systems shares (free trial).
Important note: Image Sensing Systems 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.
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