Does OptimizeRx Corporation's (NASDAQ:OPRX) CEO Salary Reflect Performance?
Will Febbo became the CEO of OptimizeRx Corporation (NASDAQ:OPRX) in 2016. First, this article will compare CEO compensation with compensation at similar sized companies. 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. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for OptimizeRx
How Does Will Febbo's Compensation Compare With Similar Sized Companies?
Our data indicates that OptimizeRx Corporation is worth US$184m, and total annual CEO compensation was reported as US$923k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$275k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. 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 Will Febbo receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at OptimizeRx has changed from year to year.
Is OptimizeRx Corporation Growing?
On average over the last three years, OptimizeRx Corporation has grown earnings per share (EPS) by 66% each year (using a line of best fit). In the last year, its revenue is up 48%.
This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has OptimizeRx Corporation Been A Good Investment?
Boasting a total shareholder return of 333% over three years, OptimizeRx Corporation has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Remuneration for Will Febbo is close enough to the median pay for a CEO of a similar sized company .
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at OptimizeRx.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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.
