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Is Evercore Inc.'s (NYSE:EVR) CEO Pay Justified?

Simply Wall St

Ralph Schlosstein became the CEO of Evercore Inc. (NYSE:EVR) in 2009. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Evercore

How Does Ralph Schlosstein's Compensation Compare With Similar Sized Companies?

According to our data, Evercore Inc. has a market capitalization of US$3.4b, and paid its CEO total annual compensation worth US$8.0m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$500k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO total compensation of that group was US$5.1m.

As you can see, Ralph Schlosstein is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Evercore Inc. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see a visual representation of the CEO compensation at Evercore, below.

NYSE:EVR CEO Compensation, November 1st 2019

Is Evercore Inc. Growing?

On average over the last three years, Evercore Inc. has grown earnings per share (EPS) by 42% each year (using a line of best fit). Its revenue is up 20% over last year.

This demonstrates that the company has been improving recently. A good result. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. You might want to check this free visual report on analyst forecasts for future earnings.

Has Evercore Inc. Been A Good Investment?

Boasting a total shareholder return of 44% over three years, Evercore 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.

In Summary...

We examined the amount Evercore Inc. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

However we must not forget that the EPS growth has been very strong over three years. In addition, shareholders have done well over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. Whatever your view on compensation, you might want to check if insiders are buying or selling Evercore shares (free trial).

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.