Darren Jensen became the CEO of LifeVantage Corporation (NASDAQ:LFVN) in 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Darren Jensen's Compensation Compare With Similar Sized Companies?
According to our data, LifeVantage Corporation has a market capitalization of US$199m, and paid its CEO total annual compensation worth US$1.3m over the year to June 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$550k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO total compensation of that group was US$1.2m.
So Darren Jensen is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at LifeVantage, below.
Is LifeVantage Corporation Growing?
Over the last three years LifeVantage Corporation has grown its earnings per share (EPS) by an average of 14% per year (using a line of best fit). Its revenue is up 11% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has LifeVantage Corporation Been A Good Investment?
Most shareholders would probably be pleased with LifeVantage Corporation for providing a total return of 42% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Darren Jensen is paid around what is normal the leaders of comparable size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. So you may want to check if insiders are buying LifeVantage shares with their own money (free access).
If you want to buy a stock that is better than LifeVantage, 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 firstname.lastname@example.org. 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.