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In 2009 Jason Gorevic was appointed CEO of Teladoc Health, Inc. (NYSE:TDOC). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Jason Gorevic's Compensation Compare With Similar Sized Companies?
According to our data, Teladoc Health, Inc. has a market capitalization of US$4.8b, and pays its CEO total annual compensation worth US$7.3m. (This is based on the year to December 2018). That's just a smallish increase of 3.2% on last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$511k. 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$5.2m.
Thus we can conclude that Jason Gorevic receives more in total compensation than the median of a group of companies in the same market, and of similar size to Teladoc Health, 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.
The graphic below shows how CEO compensation at Teladoc Health has changed from year to year.
Is Teladoc Health, Inc. Growing?
On average over the last three years, Teladoc Health, Inc. has grown earnings per share (EPS) by 2.0% each year (using a line of best fit). It achieved revenue growth of 63% over the last year.
I like the look of the strong year-on-year improvement in revenue. With that in mind, the modestly improving EPS seems positive. I wouldn't say this is necessarily top notch growth, but it is certainly promising. It could be important to check this free visual depiction of what analysts expect for the future.
Has Teladoc Health, Inc. Been A Good Investment?
I think that the total shareholder return of 313%, over three years, would leave most Teladoc Health, Inc. shareholders smiling. 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.
We compared total CEO remuneration at Teladoc Health, Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
While we generally prefer to see stronger EPS growth, there's no arguing with the strong returns to shareholders, over the last three years. As a result of the juicy return to investors, the CEO remuneration may well be quite reasonable. So you may want to check if insiders are buying Teladoc Health shares with their own money (free access).
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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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.