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In 2009 Lesa Kennedy was appointed CEO of International Speedway Corporation (NASDAQ:ISCA). 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Lesa Kennedy’s Compensation Compare With Similar Sized Companies?
Our data indicates that International Speedway Corporation is worth US$1.9b, and total annual CEO compensation is US$1.4m. (This figure is for the year to November 2017). While we always look at total compensation first, we note that the salary component is less, at US$704k. 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$3.5m.
Most shareholders would consider it a positive that Lesa Kennedy takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at International Speedway has changed from year to year.
Is International Speedway Corporation Growing?
International Speedway Corporation has increased its earnings per share (EPS) by an average of 60% a year, over the last three years (using a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions. Shareholders might be interested in this free visualization of analyst forecasts.
Has International Speedway Corporation Been A Good Investment?
International Speedway Corporation has served shareholders reasonably well, with a total return of 22% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
It appears that International Speedway Corporation remunerates its CEO below most similar sized companies. Since the business is growing, many would argue this suggests the pay is modest. While some might be keen on seeing higher returns, our short analysis has not produced any evidence to suggest Lesa Kennedy is overcompensated.
It’s good to see reasonable payment of the CEO, even while the business improves. It would be an additional positive if insiders are buying shares. Whatever your view on compensation, you might want to check if insiders are buying or selling International Speedway shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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 email@example.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.