How Does Iteris' (NASDAQ:ITI) CEO Salary Compare to Peers?

This article will reflect on the compensation paid to Joe Bergera who has served as CEO of Iteris, Inc. (NASDAQ:ITI) since 2015. This analysis will also assess whether Iteris pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Iteris

How Does Total Compensation For Joe Bergera Compare With Other Companies In The Industry?

Our data indicates that Iteris, Inc. has a market capitalization of US$250m, and total annual CEO compensation was reported as US$1.3m for the year to March 2020. That's a notable increase of 27% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$430k.

In comparison with other companies in the industry with market capitalizations ranging from US$100m to US$400m, the reported median CEO total compensation was US$830k. Accordingly, our analysis reveals that Iteris, Inc. pays Joe Bergera north of the industry median.

On an industry level, roughly 33% of total compensation represents salary and 67% is other remuneration. There isn't a significant difference between Iteris and the broader market, in terms of salary allocation in the overall compensation package. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Iteris, Inc.'s Growth Numbers

Iteris, Inc.'s earnings per share (EPS) grew 18% per year over the last three years. It achieved revenue growth of 16% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Iteris, Inc. Been A Good Investment?

Iteris, Inc. has generated a total shareholder return of 2.9% over three years, so most shareholders wouldn't be too disappointed. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

As previously discussed, Joe is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, we must not forget that the EPS growth has been very strong over three years. We also note that, over the same time frame, shareholder returns haven't been bad. So, considering the EPS growth we do not wish to criticize CEO compensation, though we'd recommend further research on management.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 2 warning signs for Iteris that investors should look into moving forward.

Switching gears from Iteris, 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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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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