Yahoo Finance Is Iteris Inc (NASDAQ:ITI) Overpaying Its CEO?
Joe Bergera has been the CEO of Iteris Inc (NASDAQ:ITI) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Iteris
How Does Joe Bergera’s Compensation Compare With Similar Sized Companies?
Our data indicates that Iteris Inc is worth US$150m, and total annual CEO compensation is US$1.2m. We note that’s an increase of 14% above last year. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO compensation to be US$292k.
As you can see, Joe Bergera is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Iteris Inc is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Iteris has changed over time.
Is Iteris Inc Growing?
Iteris Inc has increased its earnings per share (EPS) by an average of 27% a year, over the last three years In the last year, its revenue changed by just 0.8%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Iteris Inc Been A Good Investment?
Boasting a total shareholder return of 88% over three years, Iteris Inc has done well by shareholders. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
In Summary…
We compared the total CEO remuneration paid by Iteris Inc, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark 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. As a result of this good performance, the CEO remuneration may well be quite reasonable.
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
