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How Should Investors React To LiveRamp Holdings, Inc.'s (NYSE:RAMP) CEO Pay?

Simply Wall St

Scott Howe became the CEO of LiveRamp Holdings, Inc. (NYSE:RAMP) in 2011. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for LiveRamp Holdings

How Does Scott Howe's Compensation Compare With Similar Sized Companies?

According to our data, LiveRamp Holdings, Inc. has a market capitalization of US$3.5b, and pays its CEO total annual compensation worth US$6.6m. (This figure is for the year to March 2019). That's a notable increase of 21% on last year. We think total compensation is more important but we note that the CEO salary is lower, at US$685k. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO total compensation was US$5.1m.

So Scott Howe is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at LiveRamp Holdings has changed over time.

NYSE:RAMP CEO Compensation, August 6th 2019

Is LiveRamp Holdings, Inc. Growing?

LiveRamp Holdings, Inc. has reduced its earnings per share by an average of 45% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 30%.

The reduction in earnings per share, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. It could be important to check this free visual depiction of what analysts expect for the future.

Has LiveRamp Holdings, Inc. Been A Good Investment?

I think that the total shareholder return of 105%, over three years, would leave most LiveRamp Holdings, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Remuneration for Scott Howe is close enough to the median pay for a CEO of a similar sized company .

The company isn't showing particularly great growth, but shareholder returns have been pleasing. So considering most shareholders would be happy, we'd say the CEO pay is appropriate. Shareholders may want to check for free if LiveRamp Holdings insiders are buying or selling shares.

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 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. Thank you for reading.