Dave Wagner has been the CEO of Zix Corporation (NASDAQ:ZIXI) since 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 Dave Wagner's Compensation Compare With Similar Sized Companies?
According to our data, Zix Corporation has a market capitalization of US$471m, and pays its CEO total annual compensation worth US$1.4m. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$375k. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO total compensation was US$1.8m.
So Dave Wagner 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.
The graphic below shows how CEO compensation at Zix has changed from year to year.
Is Zix Corporation Growing?
On average over the last three years, Zix Corporation has shrunk earnings per share by 23% each year (measured with a line of best fit). Its revenue is up 25% over last year.
Investors should note that, over three years, earnings per share are down. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. It could be important to check this free visual depiction of what analysts expect for the future.
Has Zix Corporation Been A Good Investment?
Boasting a total shareholder return of 121% over three years, Zix Corporation has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Dave Wagner is paid around the same as most CEOs of similar size companies.
While the growth could be better, the shareholder returns are clearly good. So considering most shareholders would be happy, we'd say the CEO pay is appropriate. So you may want to check if insiders are buying Zix shares with their own money (free access).
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 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.