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Is Identiv, Inc.'s (NASDAQ:INVE) CEO Pay Fair?

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Steve Humphreys has been the CEO of Identiv, Inc. (NASDAQ:INVE) since 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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.

Check out our latest analysis for Identiv

How Does Steve Humphreys's Compensation Compare With Similar Sized Companies?

According to our data, Identiv, Inc. has a market capitalization of US$72m, and paid its CEO total annual compensation worth US$548k over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$350k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$545k.

That means Steve Humphreys receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

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

NasdaqCM:INVE CEO Compensation, March 9th 2020
NasdaqCM:INVE CEO Compensation, March 9th 2020

Is Identiv, Inc. Growing?

On average over the last three years, Identiv, Inc. has grown earnings per share (EPS) by 77% each year (using a line of best fit). In the last year, its revenue is up 17%.

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. It could be important to check this free visual depiction of what analysts expect for the future.

Has Identiv, Inc. Been A Good Investment?

Since shareholders would have lost about 20% over three years, some Identiv, Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Steve Humphreys is paid around the same as most CEOs of similar size companies.

We think that the EPS growth is very pleasing, but we find the returns over the last three years to be lacking. Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. So you may want to check if insiders are buying Identiv 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.

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.

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. Thank you for reading.