Here's What We Think About ePlus inc.'s (NASDAQ:PLUS) CEO Pay

In 2016 Mark Marron was appointed CEO of ePlus inc. (NASDAQ:PLUS). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for ePlus

How Does Mark Marron's Compensation Compare With Similar Sized Companies?

Our data indicates that ePlus inc. is worth US$1.1b, and total annual CEO compensation was reported as US$3.2m for the year to March 2019. While we always look at total compensation first, we note that the salary component is less, at US$800k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a selection of companies with market caps ranging from US$400m to US$1.6b, we found the median CEO total compensation was US$2.6m.

That means Mark Marron receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

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

NasdaqGS:PLUS CEO Compensation, February 28th 2020
NasdaqGS:PLUS CEO Compensation, February 28th 2020

Is ePlus inc. Growing?

ePlus inc. has increased its earnings per share (EPS) by an average of 12% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 12%.

This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Shareholders might be interested in this free visualization of analyst forecasts.

Has ePlus inc. Been A Good Investment?

With a total shareholder return of 19% over three years, ePlus inc. shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Remuneration for Mark Marron is close enough to the median pay for a CEO of a similar sized company .

Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. As a result of these considerations, I would suggest the CEO pay is reasonable. So you may want to check if insiders are buying ePlus shares with their own money (free access).

If you want to buy a stock that is better than ePlus, this free list of high return, low debt companies is a great place to look.

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.

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