Yahoo Finance Shareholders May Be Wary Of Increasing MIND C.T.I. Ltd's (NASDAQ:MNDO) CEO Compensation Package
Key Insights
MIND C.T.I to hold its Annual General Meeting on 6th of May
CEO Eisinger Iancu's total compensation includes salary of US$240.0k
The overall pay is comparable to the industry average
MIND C.T.I's EPS declined by 1.8% over the past three years while total shareholder loss over the past three years was 14%
The results at MIND C.T.I. Ltd (NASDAQ:MNDO) have been quite disappointing recently and CEO Eisinger Iancu bears some responsibility for this. At the upcoming AGM on 6th of May, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.
View our latest analysis for MIND C.T.I
How Does Total Compensation For Eisinger Iancu Compare With Other Companies In The Industry?
According to our data, MIND C.T.I. Ltd has a market capitalization of US$38m, and paid its CEO total annual compensation worth US$534k over the year to December 2023. This means that the compensation hasn't changed much from last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$240k.
On comparing similar-sized companies in the American Software industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$534k. This suggests that MIND C.T.I remunerates its CEO largely in line with the industry average. What's more, Eisinger Iancu holds US$5.9m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$240k | US$240k | 45% |
Other | US$294k | US$298k | 55% |
Total Compensation | US$534k | US$538k | 100% |
On an industry level, roughly 20% of total compensation represents salary and 80% is other remuneration. MIND C.T.I is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
MIND C.T.I. Ltd's Growth
Over the last three years, MIND C.T.I. Ltd has shrunk its earnings per share by 1.8% per year. In the last year, its revenue changed by just 0.3%.
Its a bit disappointing to see that the company has failed to grow its EPS. And the flat revenue is seriously uninspiring. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has MIND C.T.I. Ltd Been A Good Investment?
With a three year total loss of 14% for the shareholders, MIND C.T.I. Ltd would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 2 warning signs for MIND C.T.I (of which 1 doesn't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.
Important note: MIND C.T.I is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
