Robin Raina became the CEO of Ebix, Inc. (NASDAQ:EBIX) in 1999. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Robin Raina's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Ebix, Inc. has a market cap of US$1.3b, and is paying total annual CEO compensation of US$4.4m. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at US$2.4m. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO total compensation of that group was US$4.0m.
So Robin Raina is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Ebix has changed from year to year.
Is Ebix, Inc. Growing?
Ebix, Inc. has increased its earnings per share (EPS) by an average of 7.2% a year, over the last three years (using a line of best fit). It achieved revenue growth of 35% over the last year.
It's great to see that revenue growth is strong. With that in mind, the modestly improving EPS seems positive. So while I'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! Shareholders might be interested in this free visualization of analyst forecasts.
Has Ebix, Inc. Been A Good Investment?
With a three year total loss of 15%, Ebix, Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
Remuneration for Robin Raina is close enough to the median pay for a CEO of a similar sized company .
The per share growth could be better, in our view. And it's hard to argue that the returns over the last three years have delighted. So it would take a bold person to suggest the pay is too modest. Shareholders may want to check for free if Ebix insiders are buying or selling shares.
Important note: Ebix may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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