Scott Clements became the CEO of OneSpan Inc. (NASDAQ:OSPN) in 2017, 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 OneSpan pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
How Does Total Compensation For Scott Clements Compare With Other Companies In The Industry?
According to our data, OneSpan Inc. has a market capitalization of US$1.3b, and paid its CEO total annual compensation worth US$3.0m over the year to December 2019. That's a notable increase of 25% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$465k.
In comparison with other companies in the industry with market capitalizations ranging from US$1.0b to US$3.2b, the reported median CEO total compensation was US$4.4m. That is to say, Scott Clements is paid under the industry median. Furthermore, Scott Clements directly owns US$4.3m worth of shares in the company, implying that they are deeply invested in the company's success.
On an industry level, roughly 13% of total compensation represents salary and 87% is other remuneration. OneSpan pays out 15% of remuneration in the form of a salary, significantly higher than the industry average. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
OneSpan Inc.'s Growth
OneSpan Inc. has seen its earnings per share (EPS) increase by 18% a year over the past three years. In the last year, its revenue is up 23%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has OneSpan Inc. Been A Good Investment?
Boasting a total shareholder return of 154% over three years, OneSpan Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
As previously discussed, Scott is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. Considering robust earnings growth, we believe Scott to be modestly paid. 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.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 2 warning signs for OneSpan that investors should be aware of in a dynamic business environment.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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