In 2016 Mark Marron was appointed CEO of ePlus inc. (NASDAQ:PLUS). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
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View our latest analysis for ePlus
How Does Mark Marron’s Compensation Compare With Similar Sized Companies?
According to our data, ePlus inc. has a market capitalization of US$988m, and pays its CEO total annual compensation worth US$3.0m. (This figure is for the year to March 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$741k. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO total compensation was US$2.7m.
That means Mark Marron receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at ePlus, below.
Is ePlus inc. Growing?
Over the last three years ePlus inc. has grown its earnings per share (EPS) by an average of 12% per year (using a line of best fit). In the last year, its revenue is down -2.7%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. You might want to check this free visual report on analyst forecasts for future earnings.
Has ePlus inc. Been A Good Investment?
Most shareholders would probably be pleased with ePlus inc. for providing a total return of 70% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
Mark Marron is paid around what is normal the leaders of comparable size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling ePlus (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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. Thank you for reading.