Should You Worry About Euronet Worldwide, Inc.'s (NASDAQ:EEFT) CEO Pay Cheque?

In this article:

Mike Brown became the CEO of Euronet Worldwide, Inc. (NASDAQ:EEFT) in 1994. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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.

View our latest analysis for Euronet Worldwide

How Does Mike Brown's Compensation Compare With Similar Sized Companies?

According to our data, Euronet Worldwide, Inc. has a market capitalization of US$7.7b, and pays its CEO total annual compensation worth US$6.5m. (This figure is for the year to December 2018). We note that's an increase of 67% above last year. While we always look at total compensation first, we note that the salary component is less, at US$850k. We examined companies with market caps from US$4.0b to US$12b, and discovered that the median CEO total compensation of that group was US$6.5m.

So Mike Brown receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at Euronet Worldwide, below.

NasdaqGS:EEFT CEO Compensation, April 20th 2019
NasdaqGS:EEFT CEO Compensation, April 20th 2019

Is Euronet Worldwide, Inc. Growing?

Over the last three years Euronet Worldwide, Inc. has grown its earnings per share (EPS) by an average of 12% per year (using a line of best fit). It achieved revenue growth of 13% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.

Has Euronet Worldwide, Inc. Been A Good Investment?

I think that the total shareholder return of 97%, over three years, would leave most Euronet Worldwide, Inc. shareholders smiling. 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.

In Summary...

Mike Brown is paid around the same as most CEOs of similar size companies.

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. So you may want to check if insiders are buying Euronet Worldwide shares with their own money (free access).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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. Thank you for reading.

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