In 2013 Scott Stephenson was appointed CEO of Verisk Analytics, Inc. (NASDAQ:VRSK). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big 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.
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How Does Scott Stephenson's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Verisk Analytics, Inc. has a market cap of US$23b, and is paying total annual CEO compensation of US$7.7m. (This figure is for the year to December 2018). Notably, that's an increase of 9.1% over the year before. We think total compensation is more important but we note that the CEO salary is lower, at US$1.0m. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$12m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
This would give shareholders a good impression of the company, since most large companies 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 Verisk Analytics has changed over time.
Is Verisk Analytics, Inc. Growing?
On average over the last three years, Verisk Analytics, Inc. has grown earnings per share (EPS) by 13% each year (using a line of best fit). In the last year, its revenue is up 9.7%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.
Has Verisk Analytics, Inc. Been A Good Investment?
Boasting a total shareholder return of 85% over three years, Verisk Analytics, Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
It looks like Verisk Analytics, Inc. pays its CEO less than the average at large companies. Many would consider this to indicate that the pay is modest since the business is growing. The pleasing shareholder returns are the cherry on top; you might even consider that Scott Stephenson deserves a raise!
Most shareholders like to see a modestly paid CEO combined with strong performance by the company. But it is even better if company insiders are also buying shares with their own money. Whatever your view on compensation, you might want to check if insiders are buying or selling Verisk Analytics 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.
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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.