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Is Liquidity Services, Inc. (NASDAQ:LQDT) Excessively Paying Its CEO?

Simply Wall St

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Bill Angrick has been the CEO of Liquidity Services, Inc. (NASDAQ:LQDT) since 2000. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Liquidity Services

How Does Bill Angrick's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Liquidity Services, Inc. has a market cap of US$193m, and is paying total annual CEO compensation of US$1.2m. (This figure is for the year to September 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$380k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$100m to US$400m. The median total CEO compensation was US$1.2m.

That means Bill Angrick receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at Liquidity Services, below.

NasdaqGS:LQDT CEO Compensation, June 11th 2019

Is Liquidity Services, Inc. Growing?

Liquidity Services, Inc. has increased its earnings per share (EPS) by an average of 45% a year, over the last three years (using a line of best fit). Its revenue is down -14% over last year.

This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. You might want to check this free visual report on analyst forecasts for future earnings.

Has Liquidity Services, Inc. Been A Good Investment?

With a three year total loss of 19%, Liquidity Services, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

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

We think that the EPS growth is very pleasing, but it's disappointing to see negative shareholder returns over three years. Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. Shareholders may want to check for free if Liquidity Services insiders are buying or selling shares.

Important note: Liquidity Services may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE 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 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.