Yahoo Finance Is Verint Systems Inc. (NASDAQ:VRNT) Excessively Paying Its CEO?
Dan Bodner has been the CEO of Verint Systems Inc. (NASDAQ:VRNT) since 1994. First, this article will compare CEO compensation with compensation at similar sized companies. 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. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Verint Systems
How Does Dan Bodner's Compensation Compare With Similar Sized Companies?
According to our data, Verint Systems Inc. has a market capitalization of US$3.9b, and paid its CEO total annual compensation worth US$8.8m over the year to January 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$755k. Importantly, there may be performance hurdles relating to the non-salary component 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$4.9m.
As you can see, Dan Bodner is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Verint Systems Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Verint Systems has changed from year to year.
Is Verint Systems Inc. Growing?
Verint Systems Inc. has increased its earnings per share (EPS) by an average of 103% a year, over the last three years (using a line of best fit). It achieved revenue growth of 6.3% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. It could be important to check this free visual depiction of what analysts expect for the future.
Has Verint Systems Inc. Been A Good Investment?
Boasting a total shareholder return of 56% over three years, Verint Systems Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
We examined the amount Verint Systems Inc. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Even better, returns to shareholders have been plentiful, over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Verint Systems (free visualization of insider trades).
If you want to buy a stock that is better than Verint Systems, 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.
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. Thank you for reading.
