Key Insights

• Information Services Group's Annual General Meeting to take place on 25th of April
• Salary of US$900.0k is part of CEO Mike Connors's total remuneration
• Total compensation is 123% above industry average
• Information Services Group's EPS grew by 30% over the past three years while total shareholder loss over the past three years was 9.5%

In the past three years, the share price of Information Services Group, Inc. (NASDAQ:III) has struggled to generate growth for its shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 25th of April. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

How Does Total Compensation For Mike Connors Compare With Other Companies In The Industry?

According to our data, Information Services Group, Inc. has a market capitalization of US$176m, and paid its CEO total annual compensation worth US$2.9m over the year to December 2023. We note that's a decrease of 29% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$900k.

On examining similar-sized companies in the American IT industry with market capitalizations between US$100m and US$400m, we discovered that the median CEO total compensation of that group was US$1.3m. Accordingly, our analysis reveals that Information Services Group, Inc. pays Mike Connors north of the industry median. What's more, Mike Connors holds US$17m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 31% of total compensation represents salary and 69% is other remuneration. There isn't a significant difference between Information Services Group and the broader market, in terms of salary allocation in the overall compensation package. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Information Services Group, Inc.'s Growth

Over the past three years, Information Services Group, Inc. has seen its earnings per share (EPS) grow by 30% per year. In the last year, its revenue is up 1.7%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Information Services Group, Inc. Been A Good Investment?

With a three year total loss of 9.5% for the shareholders, Information Services Group, Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 3 warning signs for Information Services Group (of which 2 don't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.

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.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.