Robin Raina became the CEO of Ebix, Inc. (NASDAQ:EBIX) in 1999. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Robin Raina's Compensation Compare With Similar Sized Companies?
According to our data, Ebix, Inc. has a market capitalization of US$1.1b, and paid its CEO total annual compensation worth US$4.4m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$2.4m. When we examined a selection of companies with market caps ranging from US$400m to US$1.6b, we found the median CEO total compensation was US$2.5m.
Thus we can conclude that Robin Raina receives more in total compensation than the median of a group of companies in the same market, and of similar size to Ebix, Inc.. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Ebix has changed over time.
Is Ebix, Inc. Growing?
Earnings per share at Ebix, Inc. are much the same as they were three years ago, albeit with a positive trend. It achieved revenue growth of 22% over the last year.
I think the revenue growth is good. And, while modest, the earnings per share growth is noticeable. So while performance isn't amazing, we think it really does seem quite respectable. It could be important to check this free visual depiction of what analysts expect for the future.
Has Ebix, Inc. Been A Good Investment?
Given the total loss of 36% over three years, many shareholders in Ebix, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
We compared the total CEO remuneration paid by Ebix, Inc., and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. Shareholders may want to check for free if Ebix insiders are buying or selling shares.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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