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Does Inter Parfums, Inc.'s (NASDAQ:IPAR) CEO Pay Reflect Performance?

Simply Wall St

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Jean Madar became the CEO of Inter Parfums, Inc. (NASDAQ:IPAR) in 1997. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Inter Parfums

How Does Jean Madar's Compensation Compare With Similar Sized Companies?

Our data indicates that Inter Parfums, Inc. is worth US$2.1b, and total annual CEO compensation is US$995k. (This is based on the year to December 2018). That's a notable increase of 13% on last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$630k. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO total compensation was US$4.1m.

Most shareholders would consider it a positive that Jean Madar takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.

You can see, below, how CEO compensation at Inter Parfums has changed over time.

NasdaqGS:IPAR CEO Compensation, June 21st 2019

Is Inter Parfums, Inc. Growing?

Inter Parfums, Inc. has increased its earnings per share (EPS) by an average of 22% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 10%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. Shareholders might be interested in this free visualization of analyst forecasts.

Has Inter Parfums, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Inter Parfums, Inc. for providing a total return of 134% over three years. 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...

Inter Parfums, Inc. is currently paying its CEO below what is normal for companies of its size. Since the business is growing, many would argue this suggests the pay is modest. The strong history of shareholder returns might even have some thinking that Jean Madar deserves a raise!

It is relatively rare to see a modestly paid CEO when performance is so impressive. It would be even more positive if company insiders are buying shares. So you may want to check if insiders are buying Inter Parfums shares with their own money (free access).

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

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.