Yahoo Finance Does FireEye, Inc.'s (NASDAQ:FEYE) CEO Salary Reflect Performance?
Kevin Mandia became the CEO of FireEye, Inc. (NASDAQ:FEYE) in 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for FireEye
How Does Kevin Mandia's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that FireEye, Inc. has a market cap of US$3.5b, and reported total annual CEO compensation of US$6.5m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$419k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$5.1m.
So Kevin Mandia is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at FireEye has changed over time.
Is FireEye, Inc. Growing?
Over the last three years FireEye, Inc. has grown its earnings per share (EPS) by an average of 35% per year (using a line of best fit). In the last year, its revenue is up 6.4%.
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. It could be important to check this free visual depiction of what analysts expect for the future.
Has FireEye, Inc. Been A Good Investment?
FireEye, Inc. has generated a total shareholder return of 18% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
Kevin Mandia is paid around what is normal the leaders of comparable size companies.
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. So upon reflection one could argue that the CEO pay is quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling FireEye shares (free trial).
If you want to buy a stock that is better than FireEye, this free list of high return, low debt companies is a great place to look.
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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