John Winfield has been the CEO of The InterGroup Corporation (NASDAQ:INTG) since 1987. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does John Winfield's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that The InterGroup Corporation has a market cap of US$69m, and is paying total annual CEO compensation of US$919k. (This is based on the year to June 2018). While we always look at total compensation first, we note that the salary component is less, at US$844k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$497k.
Thus we can conclude that John Winfield receives more in total compensation than the median of a group of companies in the same market, and of similar size to The InterGroup Corporation. However, this doesn't necessarily mean the pay is too high. 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 InterGroup, below.
Is The InterGroup Corporation Growing?
On average over the last three years, The InterGroup Corporation has grown earnings per share (EPS) by 106% each year (using a line of best fit). In the last year, its revenue is up 7.3%.
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. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has The InterGroup Corporation Been A Good Investment?
The InterGroup Corporation has served shareholders reasonably well, with a total return of 18% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
We compared total CEO remuneration at The InterGroup Corporation with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Looking at the same time period, we think that the shareholder returns are respectable. While it may be worth researching further, we don't see a problem with the CEO pay, given the good EPS growth. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at InterGroup.
If you want to buy a stock that is better than InterGroup, this free list of high return, low debt companies is a great place to look.
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 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.