Doug Raucy became the CEO of 1347 Property Insurance Holdings, Inc. (NASDAQ:PIH) in 2012. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Doug Raucy's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that 1347 Property Insurance Holdings, Inc. has a market cap of US$29m, and reported total annual CEO compensation of US$453k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$318k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$506k.
So Doug Raucy is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at 1347 Property Insurance Holdings has changed over time.
Is 1347 Property Insurance Holdings, Inc. Growing?
On average over the last three years, 1347 Property Insurance Holdings, Inc. has shrunk earnings per share by 65% each year (measured with a line of best fit). Its revenue is up 177% over last year.
The reduction in earnings per share, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has 1347 Property Insurance Holdings, Inc. Been A Good Investment?
With a three year total loss of 33%, 1347 Property Insurance Holdings, Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
Doug Raucy is paid around the same as most CEOs of similar size companies.
The per share growth could be better, in our view. And we think the shareholder returns - over three years - have been underwhelming. So suffice it to say we don't think the compensation is modest. So you may want to check if insiders are buying 1347 Property Insurance Holdings shares with their own money (free access).
Important note: 1347 Property Insurance Holdings 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.
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If you spot an error that warrants correction, please contact the editor at email@example.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.