Darryl Graham Rawlings became the CEO of Trupanion Inc (NASDAQ:TRUP) in 2000. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Darryl Graham Rawlings’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Trupanion Inc has a market cap of US$995m, and is paying total annual CEO compensation of US$556k. (This number is for the twelve months until 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$300k. When we examined a selection of companies with market caps ranging from US$400m to US$1.6b, we found the median CEO compensation was US$2.2m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at Trupanion has changed over time.
Is Trupanion Inc Growing?
Over the last three years Trupanion Inc has grown its earnings per share (EPS) by an average of 83% per year. It achieved revenue growth of 26% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Trupanion Inc Been A Good Investment?
Most shareholders would probably be pleased with Trupanion Inc for providing a total return of 219% over three years. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
Trupanion Inc is currently paying its CEO below what is normal for companies of its size. Considering the underlying business is growing earnings, this would suggest the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Darryl Graham Rawlings deserves a raise!
Most shareholders like to see a modestly paid CEO combined with strong performance by the company. It would be even more positive if company insiders are buying shares. Shareholders may want to check for free if Trupanion insiders are buying or selling shares.
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.