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Is Intrepid Potash Inc’s (NYSE:IPI) CEO Paid At A Competitive Rate?

In 2014 Bob Jornayvaz was appointed CEO of Intrepid Potash Inc (NYSE:IPI). First, this article will compare CEO compensation with compensation at similar sized companies. 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 process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Intrepid Potash

How Does Bob Jornayvaz’s Compensation Compare With Similar Sized Companies?

Our data indicates that Intrepid Potash Inc is worth US$489m, and total annual CEO compensation is US$2m. We note that’s an increase of 154% above last year. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO compensation was US$2m.

Thus we can conclude that Bob Jornayvaz receives more in total compensation than the median of a group of companies in the same market, and of similar size to Intrepid Potash Inc. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

The graphic below shows how CEO compensation at Intrepid Potash has changed from year to year.

NYSE:IPI CEO Compensation November 1st 18

Is Intrepid Potash Inc Growing?

Over the last three years Intrepid Potash Inc has grown its earnings per share (EPS) by an average of 89% per year. Its revenue is up 3.1% over last year.

This demonstrates that the company has been improving recently. A good result. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.

You might want to check this free visual report on analyst forecasts for future earnings.

Has Intrepid Potash Inc Been A Good Investment?

Intrepid Potash Inc has generated a total shareholder return of 2.3% over three years, so most shareholders wouldn’t be too disappointed. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.

In Summary…

We compared the total CEO remuneration paid by Intrepid Potash Inc, and compared it to remuneration at a group of similar sized companies. 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. We also note that, over the same time frame, shareholder returns haven’t been bad. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we’d recommend further research on management. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Intrepid Potash Inc.

Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.