U.S. Markets closed
  • S&P Futures

    4,557.75
    -13.50 (-0.30%)
     
  • Dow Futures

    35,217.00
    -42.00 (-0.12%)
     
  • Nasdaq Futures

    15,112.25
    -93.75 (-0.62%)
     
  • Russell 2000 Futures

    2,083.80
    -8.30 (-0.40%)
     
  • Crude Oil

    86.70
    +1.27 (+1.49%)
     
  • Gold

    1,810.60
    -1.80 (-0.10%)
     
  • Silver

    23.48
    -0.01 (-0.05%)
     
  • EUR/USD

    1.1328
    -0.0003 (-0.0227%)
     
  • 10-Yr Bond

    1.8650
    +0.0930 (+5.25%)
     
  • Vix

    22.79
    +3.60 (+18.76%)
     
  • GBP/USD

    1.3599
    +0.0001 (+0.0068%)
     
  • USD/JPY

    114.6060
    +0.0210 (+0.0183%)
     
  • BTC-USD

    42,305.72
    +4.74 (+0.01%)
     
  • CMC Crypto 200

    1,008.11
    -1.28 (-0.13%)
     
  • FTSE 100

    7,563.55
    -47.68 (-0.63%)
     
  • Nikkei 225

    27,744.84
    -512.41 (-1.81%)
     

What Can We Conclude About LiveRamp Holdings' (NYSE:RAMP) CEO Pay?

  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Scott Howe became the CEO of LiveRamp Holdings, Inc. (NYSE:RAMP) in 2011, 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 LiveRamp Holdings pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for LiveRamp Holdings

How Does Total Compensation For Scott Howe Compare With Other Companies In The Industry?

At the time of writing, our data shows that LiveRamp Holdings, Inc. has a market capitalization of US$4.3b, and reported total annual CEO compensation of US$11m for the year to March 2020. We note that's an increase of 62% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$690k.

In comparison with other companies in the industry with market capitalizations ranging from US$2.0b to US$6.4b, the reported median CEO total compensation was US$6.3m. This suggests that Scott Howe is paid more than the median for the industry. Moreover, Scott Howe also holds US$71m worth of LiveRamp Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component

2020

2019

Proportion (2020)

Salary

US$690k

US$685k

6%

Other

US$9.9m

US$5.9m

94%

Total Compensation

US$11m

US$6.6m

100%

Talking in terms of the industry, salary represented approximately 14% of total compensation out of all the companies we analyzed, while other remuneration made up 86% of the pie. LiveRamp Holdings sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation
ceo-compensation

LiveRamp Holdings, Inc.'s Growth

Over the last three years, LiveRamp Holdings, Inc. has shrunk its earnings per share by 43% per year. Its revenue is up 30% over the last year.

The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has LiveRamp Holdings, Inc. Been A Good Investment?

We think that the total shareholder return of 159%, over three years, would leave most LiveRamp Holdings, Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

As we noted earlier, LiveRamp Holdings pays its CEO higher than the norm for similar-sized companies belonging to the same industry. But LiveRamp Holdings is growing its revenue, and total shareholder returns have also been pleasing for the last three years. The only sore spot is EPS growth, which is negative over the same period. All things considered, although EPS growth would've been nice, the positive investor returns and revenue growth lead us to believe Scott is appropriately paid.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 2 warning signs for LiveRamp Holdings that investors should be aware of in a dynamic business environment.

Switching gears from LiveRamp Holdings, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.