Jonathan Ilany became the CEO of Tiptree Inc. (NASDAQ:TIPT) in 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Jonathan Ilany’s Compensation Compare With Similar Sized Companies?
According to our data, Tiptree Inc. has a market capitalization of US$198m, and pays its CEO total annual compensation worth US$3.7m. (This number is for the twelve months until 2017). While we always look at total compensation first, we note that the salary component is less, at US$600k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO compensation was US$993k.
Thus we can conclude that Jonathan Ilany receives more in total compensation than the median of a group of companies in the same market, and of similar size to Tiptree 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.
You can see a visual representation of the CEO compensation at Tiptree, below.
Is Tiptree Inc. Growing?
Tiptree Inc. has increased its earnings per share (EPS) by an average of 31% a year, over the last three years It achieved revenue growth of 6.9% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions.
Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Tiptree Inc. Been A Good Investment?
Given the total loss of 4.9% over three years, many shareholders in Tiptree Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared the total CEO remuneration paid by Tiptree Inc., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. While EPS is positive, we’d say shareholders would want better returns before the CEO is paid much more. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Tiptree.
Or you might prefer examine intently this intuitive graph showing past 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 email@example.com.