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How Does Enova International's (NYSE:ENVA) CEO Pay Compare With Company Performance?

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·3 min read
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This article will reflect on the compensation paid to David Fisher who has served as CEO of Enova International, Inc. (NYSE:ENVA) since 2013. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Enova International

Comparing Enova International, Inc.'s CEO Compensation With the industry

According to our data, Enova International, Inc. has a market capitalization of US$455m, and paid its CEO total annual compensation worth US$7.2m over the year to December 2019. We note that's an increase of 27% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$806k.

For comparison, other companies in the same industry with market capitalizations ranging between US$200m and US$800m had a median total CEO compensation of US$3.5m. Hence, we can conclude that David Fisher is remunerated higher than the industry median. Furthermore, David Fisher directly owns US$3.1m worth of shares in the company, implying that they are deeply invested in the company's success.

Component

2019

2018

Proportion (2019)

Salary

US$806k

US$760k

11%

Other

US$6.4m

US$4.9m

89%

Total Compensation

US$7.2m

US$5.7m

100%

On an industry level, around 17% of total compensation represents salary and 83% is other remuneration. Enova International pays a modest slice of remuneration through salary, as compared to the broader 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

A Look at Enova International, Inc.'s Growth Numbers

Enova International, Inc. has seen its earnings per share (EPS) increase by 35% a year over the past three years. In the last year, its revenue is up 6.2%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Enova International, Inc. Been A Good Investment?

With a total shareholder return of 13% over three years, Enova International, Inc. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

As previously discussed, David is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, the earnings per share growth over three years is certainly impressive. We also note that, over the same time frame, shareholder returns haven't been bad. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't say CEO compensation problematic.

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. That's why we did some digging and identified 2 warning signs for Enova International that you should be aware of before investing.

Important note: Enova International is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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.