Insight Enterprises, Inc.'s (NASDAQ:NSIT) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• Insight Enterprises will host its Annual General Meeting on 13th of May
• CEO Joyce Mullen's total compensation includes salary of US$1.00m
• The total compensation is similar to the average for the industry
• Over the past three years, Insight Enterprises' EPS fell by 3.7% and over the past three years, the total shareholder return was 33%

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The share price of Insight Enterprises, Inc. (NASDAQ:NSIT) has increased significantly over the past few years. However, the earnings growth has not kept up with the share price momentum, suggesting that some other factors may be driving the price direction. Some of these issues will occupy shareholders' minds as the AGM rolls around on 13th of May. One way that shareholders can influence managerial decisions is through voting on CEO and executive remuneration packages, which studies show could impact company performance. From the data that we gathered, we think that shareholders should hold off on a raise on CEO compensation until performance starts to show some improvement.

See our latest analysis for Insight Enterprises

Comparing Insight Enterprises, Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that Insight Enterprises, Inc. has a market capitalization of US$4.3b, and reported total annual CEO compensation of US$8.7m for the year to December 2024. Notably, that's a decrease of 19% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.0m.

On comparing similar companies from the American Electronic industry with market caps ranging from US$2.0b to US$6.4b, we found that the median CEO total compensation was US$8.4m. So it looks like Insight Enterprises compensates Joyce Mullen in line with the median for the industry. What's more, Joyce Mullen holds US$8.0m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 23% of total compensation represents salary and 77% is other remuneration. It's interesting to note that Insight Enterprises allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Insight Enterprises, Inc.'s Growth Numbers

Over the last three years, Insight Enterprises, Inc. has shrunk its earnings per share by 3.7% per year. It saw its revenue drop 8.7% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Insight Enterprises, Inc. Been A Good Investment?

We think that the total shareholder return of 33%, over three years, would leave most Insight Enterprises, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Although shareholders would be quite happy with the returns they have earned on their initial investment, earnings have failed to grow and this could mean returns may be hard to keep up. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 4 warning signs for Insight Enterprises that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.