James Fine became the CEO of Investors Title Company (NASDAQ:ITIC) in 1973. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does James Fine's Compensation Compare With Similar Sized Companies?
Our data indicates that Investors Title Company is worth US$310m, and total annual CEO compensation is US$1.3m. (This number is for the twelve months until December 2018). We note that's an increase of 217% above last year. We think total compensation is more important but we note that the CEO salary is lower, at US$423k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO total compensation of that group was US$1.6m.
That means James Fine receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Investors Title has changed over time.
Is Investors Title Company Growing?
On average over the last three years, Investors Title Company has grown earnings per share (EPS) by 27% each year (using a line of best fit). It saw its revenue drop -3.3% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Investors Title Company Been A Good Investment?
Most shareholders would probably be pleased with Investors Title Company for providing a total return of 89% over three years. 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.
Remuneration for James Fine is close enough to the median pay for a CEO of a similar sized company .
The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! Shareholders may want to check for free if Investors Title insiders are buying or selling shares.
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.
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.