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Rob Capps became the CEO of MIND Technology, Inc. (NASDAQ:MIND) in 2015, and we think it’s a good time to look at the executive’s compensation against the backdrop of overall company performance. This analysis will also assess whether MIND Technology pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for MIND Technology

Comparing MIND Technology, Inc.’s CEO Compensation With the industry

At the time of writing, our data shows that MIND Technology, Inc. has a market capitalization of US$26m, and reported total annual CEO compensation of US$388k for the year to January 2020. That’s a fairly small increase of 5.5% over the previous year. We note that the salary portion, which stands at US$281.3k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$1.6m. Accordingly, MIND Technology pays its CEO under the industry median. What’s more, Rob Capps holds US$88k worth of shares in the company in their own name.

Component

2020

2019

Proportion (2020)

Salary

US$281k

US$263k

72%

Other

US$107k

US$105k

28%

Total Compensation

US$388k

US$368k

100%

On an industry level, around 21% of total compensation represents salary and 79% is other remuneration. MIND Technology pays out 72% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion – which is generally tied to performance, is lower.

ceo-compensation

A Look at MIND Technology, Inc.’s Growth Numbers

MIND Technology, Inc. has seen its earnings per share (EPS) increase by 20% a year over the past three years. It saw its revenue drop 4.3% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s always a tough situation when revenues are not growing, but ultimately profits are more important. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has MIND Technology, Inc. Been A Good Investment?

With a three year total loss of 44% for the shareholders, MIND Technology, Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude…

As we noted earlier, MIND Technology pays its CEO lower than the norm for similar-sized companies belonging to the same industry. Importantly though, the company has impressed with its EPS growth over three years. Considering EPS are on the up, we would say Rob is compensated fairly. But shareholders will likely want to hold off on any raise for Rob until investor returns are positive.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That’s why we did our research, and identified 2 warning signs for MIND Technology (of which 1 is a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from MIND Technology, if you’re hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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. 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.

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