James Fine has been the CEO of Investors Title Company (NASDAQ:ITIC) since 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 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 James Fine's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Investors Title Company has a market cap of US$306m, and reported total annual CEO compensation of US$1.3m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$423k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO total compensation was US$1.9m.
Most shareholders would consider it a positive that James Fine takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at Investors Title has changed over time.
Is Investors Title Company Growing?
Over the last three years Investors Title Company has grown its earnings per share (EPS) by an average of 15% per year (using a line of best fit). It achieved revenue growth of 2.4% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Investors Title Company Been A Good Investment?
Boasting a total shareholder return of 80% over three years, Investors Title Company has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
It looks like Investors Title Company pays its CEO less than similar sized companies.
Since the business is growing, many would argue this suggests the pay is modest. The strong history of shareholder returns might even have some thinking that James Fine 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. Shareholders may want to check for free if Investors Title insiders are buying or selling shares.
If you want to buy a stock that is better than Investors Title, this free list of high return, low debt companies is a great place to look.
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.