Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Jean Madar became the CEO of Inter Parfums, Inc. (NASDAQ:IPAR) in 1997. 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. 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.
How Does Jean Madar's Compensation Compare With Similar Sized Companies?
According to our data, Inter Parfums, Inc. has a market capitalization of US$2.1b, and pays its CEO total annual compensation worth US$995k. (This figure is for the year to December 2018). That's a notable increase of 13% on last year. While we always look at total compensation first, we note that the salary component is less, at US$630k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$4.1m.
Most shareholders would consider it a positive that Jean Madar takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Inter Parfums has changed over time.
Is Inter Parfums, Inc. Growing?
Over the last three years Inter Parfums, Inc. has grown its earnings per share (EPS) by an average of 22% per year (using a line of best fit). It achieved revenue growth of 10% over the last year.
This demonstrates that the company has been improving recently. A good result. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. It could be important to check this free visual depiction of what analysts expect for the future.
Has Inter Parfums, Inc. Been A Good Investment?
Boasting a total shareholder return of 134% over three years, Inter Parfums, 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.
It looks like Inter Parfums, Inc. pays its CEO less than similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. The pleasing shareholder returns are the cherry on top; you might even consider that Jean Madar deserves a raise!
It's not often we see shareholders do so well, and yet the CEO is paid modestly. It would be even more positive if company insiders are buying shares. So you may want to check if insiders are buying Inter Parfums shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.