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Kevin Phillips became the CEO of ManTech International Corporation (NASDAQ:MANT) in 2018, 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 evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
Comparing ManTech International Corporation’s CEO Compensation With the industry
At the time of writing, our data shows that ManTech International Corporation has a market capitalization of US$3.0b, and reported total annual CEO compensation of US$3.8m for the year to December 2019. We note that’s an increase of 38% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$938k.
On examining similar-sized companies in the industry with market capitalizations between US$2.0b and US$6.4b, we discovered that the median CEO total compensation of that group was US$6.2m. In other words, ManTech International pays its CEO lower than the industry median. Furthermore, Kevin Phillips directly owns US$5.6m worth of shares in the company, implying that they are deeply invested in the company’s success.
Speaking on an industry level, nearly 14% of total compensation represents salary, while the remainder of 86% is other remuneration. According to our research, ManTech International has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
ManTech International Corporation’s Growth
ManTech International Corporation has seen its earnings per share (EPS) increase by 28% a year over the past three years. In the last year, its revenue is up 19%.
This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company’s future earnings..
Has ManTech International Corporation Been A Good Investment?
We think that the total shareholder return of 80%, over three years, would leave most ManTech International Corporation shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.
As we touched on above, ManTech International Corporation is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. When taking into account the company’s strong EPS growth over the past three years, it appears CEO compensation is modest. Plus, we can’t ignore the impressive shareholder returns, and won’t be surprised if some shareholders were to reward such excellent all-around performance with a raise.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for ManTech International that investors should look into moving forward.
Switching gears from ManTech International, 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.